Bitcoin’s sharp sell-off from $107,000 was the result of profit taking, not contagion from Moody’s recent downgrade of US debt.
Key takeaways:
Bitcoin recovered from its sharp sell-off from $107,000, suggesting it functions as a hedge against uncertainty for investors reacting to Moody’s recent downgrade of US debt.
Moody’s downgraded the US credit rating to Aa1, citing a $36 trillion debt and rising deficits, causing market turbulence and a spike in US Treasury yields.
