Is Bitcoin About to Explode? Golden Cross and U.S. Debt Crisis Say Yes
Bitcoin trades at around $103,233, with its market capitalization standing at $2.05 trillion, as of May 19, 2025.
That’s after the crypto rallies over the weekend. As a result, the leading cryptocurrency is now nearing a Golden Cross, a technical milestone where the 50-day simple moving average crosses above the 200-day simple moving average, typically a sign of a potential bullish movement.
Analysts say this crossover is either imminent or has recently occurred, following a death cross in early April 2025 that misled bearish investors.
Daily chart for BTC/USDT (Source: TradingView)
The April death cross, where the 50-day mean declined below the 200-day, was a bear trap since Bitcoin’s price reversed, catching short-selling investors off guard. The same trend occurred in August 2024 when BTC rose from $50,000 to $109,000 to January 2025 following a bear trap.
BTC presently trades below its all-time high of $109,114.88, but the Golden Cross could bring forth further gains if confirmed by sustained trading volume.
Moody’s Downgrade Pushes Bitcoin into the Spotlight
The current macroeconomic circumstances are currently boosting Bitcoin’s appeal. On May 16, 2025, Moody’s downgraded the U.S. sovereign credit rating from Aaa to Aa1 due to a national debt of approximately $36.2 trillion.
The downgrade has increased concerns about U.S. fiscal stability, pushing Treasury yields higher and leading investors to seek alternative assets.
Also read: Bitcoin Could Soar to $135,000 by July, Analyst Predicts
BTC, often seen as a hedge against economic uncertainty, is seeing increased interest as a decentralized store of value due to the present circumstances surrounding the downgrade.
Moody’s decision shows fears of unsustainable borrowing, which could reduce the confidence in traditional financial systems. While market sentiment favors a bullish outlook for Bitcoin, some analysts warn that macroeconomic volatility, including a potential switch in monetary policy, could introduce short-term risks to its upward trajectory.
Bitcoin’s Future Relies on Debt, Demand, and Momentum
Bitcoin’s current technical setup and macroeconomic trend suggest potential for a rally, though risks remain.
A Golden Cross in 2024 preceded a 69% price surge, yet the 2014, 2015, and 2020 false breaks remind us of the need for confirmation in the form of trading volume and sustained momentum.
Also read: Robert Kiyosaki Predicts $1 Million BTC by 2035 Amid Inflation Warnings
The April 2025 bear trap shows the 2024 market dynamics have increased trader sentiment, with the majority believing there is a push higher to fresh highs. Bitcoin’s direction will depend on global economic conditions, regulatory developments, and continuous U.S. debt concerns, which may continue to drive demand for alternative assets.
Investors are advised to closely monitor technical indicators and macroeconomic trends, as these will determine Bitcoin’s performance in the near term. With U.S. fiscal challenges unlikely to resolve soon, Bitcoin’s role as a hedge could gain further attention and attract investors, provided it sustains its current momentum.
