US government debt is rattling investors, and even if Bitcoin hits an all-time high, it is contributing to a sharp decline in the market.
US public debt has sparked investors’ concerns, even if Bitcoin (BTC) hits an all-time high. On May 21, the S&P 500 dropped by 0.98% to 5,882.35 points, while the high-tech NASDAQ fell by 0.63% to 21,232.05. At the same time, the Dow Jones lost 620.63 points (1.46%) in red depth at 42,059.08.
Dow Jones Industrial Average Heat Map | Source: Tipranks
Investors’ focus is primarily on US debt. The rise in bonds is because they threaten to make the government’s deficit even higher. The latest $16 billion auction of Treasury bonds over 20 years saw little demand from investors and increased bond yields. This comes after the US suffered a credit rating downgrade from Moody’s and lost its perfect score.
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At the same time, the US Congress is pushing for new bills to extend the tax cuts during the Trump era. These cuts increase disposable income, particularly for high-income people, but also raise concerns about further growing federal deficits.
Still, this uncertain macroeconomic environment appears to be working in favor of Bitcoin. The biggest crypto assets reached the best new ever, but gold also performed strong.
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High-tech stocks, healthcare downs, and Google stocks increase by 4%
Almost all of the top 30 companies listed on Dow Jones were in decline, including technology, major retailers, and healthcare. However, alphabet stock registered with NASDAQ rose 4% with Google’s new AI announcement. Tech Giant is working to redefine searches and works just like the Big AI model.
United Health continues to decline as the scandal adds to the scandal. Most recently, reports revealed that the company tried to cut insurance payments by paying nursing homes and reducing relocation to hospitals. This exposed the insurance giant to potential lawsuits, and its stock fell 6% in the news.
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