According to The Kobeissi Letter, Fitch downgraded the US long-term credit rating from AAA to AA+ in 2023, citing concerns over rising US debt, unresolved fiscal challenges, and persistent Fed rate hikes (Source: Kobeissi Letter, May 17, 2025). This downgrade set the stage for Moody’s recent historic downgrade, which is expected to increase volatility across traditional and crypto markets. Traders should monitor potential capital flows from US Treasuries into alternative assets like Bitcoin and Ethereum, as increased risk aversion and uncertainty about US fiscal stability could enhance crypto’s appeal as a hedge (Source: Kobeissi Letter). Crypto trading strategies should focus on heightened volatility, potential inflows into decentralized assets, and correlation shifts between digital assets and traditional safe havens.