Recent concerns over rising U.S. debt are alarming investors, reflected in falling stock markets, even as Bitcoin hits record highs.
U.S. Debt Issues and Market Impact
U.S. public debt has ignited serious concerns among investors. Rising bond yields threaten to push the budget deficit higher. A recent $16 billion auction of 20-year Treasury bonds attracted little demand from investors, leading to higher bond yields. This came after the U.S. suffered a credit rating downgrade from Moody’s, losing its perfect score.
Stock Market Changes and Declines
Stock index performance also confirms negative trends. On May 21, the S&P 500 fell by 0.98%, closing at 5,882.35, while the Nasdaq declined by 0.63%, ending at 21,232.05. The Dow Jones significantly dropped by 1.46%, closing at 42,059.08, down 620.63 points. Most companies in the top 30 on the Dow Jones saw declines, with Alphabet's shares increasing by 4% due to a new AI announcement.
Bitcoin Situation and Investor Wealth
The uncertain macroeconomic environment seems to favor Bitcoin. The largest crypto asset reached a new all-time high, while gold also showed strong performance, rising by 0.94% to $3,313.5 per ounce.
The current situation with U.S. debt and declining stock markets raises concerns for investors, while the cryptocurrency market, particularly Bitcoin, continues to show impressive growth.
