On May 16, 2025, Moody’s downgraded the long – term credit rating of the United States from Aaa to Aa1. This is the first time in history that the agency has stripped the US of its top – tier status. The agency pointed out that the US has seen a decade – long increase in debt levels, rising interest burdens, and successive failures by policymakers to implement meaningful deficit – control measures.
The downgrade comes after previous cuts by S&P in 2011 and Fitch in 2023, leaving the US without a top – tier rating for the first time in modern financial history. Although Moody’s has affirmed a “stable” outlook for now, citing the dollar’s reserve currency status and the scale of US financial markets, the downgrade symbolizes a crack in the global perception of US creditworthiness.
Bitcoin has maintained its position above $100,000 amid the persistent macro – economic uncertainty, highlighting its emerging status as a non – sovereign hedge against fiscal instability. Many in the industry view Bitcoin’s price stability after the downgrade as further evidence that its safe – haven narrative is gaining traction among investors. With centralized monetary systems facing credibility challenges, investors seem increasingly inclined to consider decentralized alternatives like Bitcoin, which is backed by code, scarcity, and network effects, rather than relying solely on government – issued currencies.
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