According to @markets, after the Fitch downgrade of U.S. sovereign debt in 2023, the S&P 500 dropped 10% and the Russell 2000 fell 17% within three months, while bond yields surged by approximately 23%. The decline in equities was more severe than the 2011 S&P downgrade, but yields moved in the opposite direction, rising sharply instead of falling. This divergence reflects heightened risk aversion and concerns over U.S. fiscal stability, driving investors away from stocks and into cash, yet with less demand for bonds, leading to higher yields (source: Bloomberg, August 2023). For crypto traders, this scenario highlights how traditional market stress and U.S. debt concerns boost volatility and can drive inflows into Bitcoin and stablecoins as alternative stores of value, a trend seen in Q3 2023 (source: CoinDesk, September 2023).