Moody’s Downgrades US Credit Rating, Raising Concerns About Borrow Costs and Crypto Volatility

On May 16, 2025, Moody’s Investors Service downgraded the United States’ credit rating from its highest possible score to Aa1. The agency cited soaring federal debt and widening deficits as key factors behind this significant shift. This downgrade could lead to higher borrowing costs for the US government and ripple through global financial markets, particularly affecting cryptocurrencies like Bitcoin and Ethereum.