Moody’s downgraded the US’ long-term credit standing from Aaa to Aa1 on Might 16, marking the primary time in historical past the company has stripped the US of its top-tier standing.
The company pointed to a decade of rising debt ranges, escalating curiosity burdens, and a constant failure by policymakers to enact significant deficit controls.
Based on Moody’s, federal deficits are anticipated to widen sharply within the coming years, probably reaching 9% of GDP by 2035, up from 6.4% in 2024, as spending commitments develop and curiosity prices eat extra of the federal funds.
Whereas Moody’s affirmed a “secure” outlook for now, citing the greenback’s reserve foreign money standing and the dimensions of US monetary markets, the downgrade marks a symbolic fracture in international perceptions of US creditworthiness.
The transfer follows prior cuts by S&P in 2011 and Fitch in 2023, leaving the US with no top-tier score for the primary time in trendy monetary historical past.
Market response was modest, with Treasury yields edging larger. Nonetheless, the longer-term implications, particularly for institutional portfolios constructed on the belief of US risk-free debt, might ripple outward over time.
Bitcoin stays agency amid sovereign credit score shake-up
Bitcoin (BTC) maintained its place above $100,000 amid the sustained macro uncertainty, highlighting its rising standing as a non-sovereign hedge in opposition to fiscal instability.
Based mostly on CryptoSlate information, Bitcoin was buying and selling at $103,591 as of press time, up 0.15% over the previous 24 hours. In the meantime, lots of the main altcoins noticed some downward promoting strain and volatility following the information.
Bitcoin and equities confirmed resilience the final time the US confronted a score minimize in 2023. The sample might repeat, however the market stays cautious of potential promoting on Monday’s open.
The flagship crypto’s resilience contrasts with the historic view of cryptocurrencies as risk-on belongings, suggesting a rising investor base now treats Bitcoin as a strategic allocation throughout macroeconomic uncertainty.
Many within the trade see Bitcoin’s worth stability following the downgrade as additional proof that its safe-haven narrative is gaining traction amongst traders.
With centralized financial programs going through credibility challenges, capital seems more and more open to decentralized options backed by code, shortage, and community results fairly than authorities guarantees.
Bitcoin Market Knowledge
On the time of press 1:32 am UTC on Might. 17, 2025, Bitcoin is ranked #1 by market cap and the worth is down 0.47% over the previous 24 hours. Bitcoin has a market capitalization of $2.05 trillion with a 24-hour buying and selling quantity of $44.97 billion. Be taught extra about Bitcoin ›
Crypto Market Abstract
On the time of press 1:32 am UTC on Might. 17, 2025, the full crypto market is valued at at $3.28 trillion with a 24-hour quantity of $110.11 billion. Bitcoin dominance is at present at 62.50%. Be taught extra in regards to the crypto market ›
