Bitcoin Nears Golden Cross as Moody’s Downgrade Highlights U.S. Debt Worries
Bitcoin (BTC) is approaching a significant technical milestone known as the “golden cross,” amid growing concerns over the sustainability of U.S. fiscal debt, recently underscored by Moody’s credit rating downgrade.
According to TradingView data, BTC’s price chart is mirroring a bullish setup that preceded the major rally from $70,000 to $100,000 in late 2024. The golden cross occurs when the 50-day simple moving average (SMA) crosses above the 200-day SMA, signaling that the short-term trend is gaining strength over the long-term trend and potentially marking the start of a strong bull run.
While the golden cross has a mixed success rate in forecasting price trends, this upcoming event gains extra attention because it follows closely after a “death cross” that trapped bearish investors earlier this year. This pattern closely resembles what happened between August and September 2024, which ultimately paved the way for Bitcoin’s climb past $70,000 by November and a record peak above $109,000 in January.
Back in early August 2024, BTC dipped to around $50,000 as the 50-day SMA fell below the 200-day SMA, confirming the death cross. However, this was a false signal—a bear trap—similar to the one seen in April 2025. Following these signals, Bitcoin reversed and entered a sustained uptrend after the golden cross appeared in late October 2024.
This bullish sequence appears to be repeating itself since early April 2025, with the potential for Bitcoin’s price to push higher once the golden cross is confirmed in the coming days.
It’s important to remember that past patterns don’t guarantee future results, and technical signals can fail. Nevertheless, current macroeconomic factors seem to support the positive technical outlook.
Moody’s Downgrade Amplifies U.S. Debt Concerns
Adding to market tension, credit rating agency Moody’s downgraded the U.S. sovereign credit rating from the top-tier “Aaa” to “Aa1” on Friday, citing the nation’s swelling debt, which has now surpassed $36 trillion.
The bond market has already been pricing in these fiscal risks for a while. Last week, CoinDesk reported how elevated Treasury yields reflect expectations of continued government spending and increased sovereign risk premiums—factors that often boost Bitcoin’s appeal as a hedge.
