According to The Kobeissi Letter, Moody's has officially downgraded the United States' credit rating for the first time in history, citing concerns about rising US debt and projections that interest payments will reach 30% of government revenue by 2035 (source: The Kobeissi Letter, May 17, 2025). This downgrade could lead to higher volatility in traditional financial markets, potentially increasing interest in Bitcoin and other cryptocurrencies as alternative stores of value. Traders should monitor USD volatility and global capital flows, as credit rating changes can trigger risk-off sentiment and drive funds into digital assets (source: The Kobeissi Letter). The downgrade may also influence stablecoin demand and dollar-pegged assets, impacting liquidity across the crypto market.

According to Moody's, the recent US credit downgrade is driven by concerns similar to those cited by Fitch in 2023, focusing on the rapidly increasing US debt. Moody's projects the US deficit will rise from 6.4% of GDP in 2024 to 9% by 2035, indicating a worsening fiscal outlook (source: Moody's, 2023). This unsustainable fiscal path is expected to increase market volatility, which often leads to higher interest in cryptocurrencies as alternative assets. Traders should monitor the US fiscal situation closely, as further downgrades or negative outlooks may result in bullish momentum for safe-haven digital assets such as Bitcoin and Ethereum (source: Moody's, 2023).

According to André Dragosch, Ray Dalio warns of a US debt crisis 'heart attack' within three years, suggesting Bitcoin might play a significant role as an alternative money due to its stable supply. Dalio emphasizes the importance of finding alternatives as 'debt is money and money is debt' (source: André Dragosch).

According to The Kobeissi Letter, US net interest payments as a percentage of federal revenue reached 18.7% in January, the highest since the 1990s. This level is just 20 basis points below the all-time high of 18.9% in 1992, indicating significant fiscal pressures that could impact market stability and influence trading strategies.

According to The Kobeissi Letter, US net interest payments as a percentage of federal revenue hit 18.7% in January, marking the highest level since the 1990s. This figure is just 20 basis points below the all-time high of 18.9% recorded in 1992, indicating a significant strain on federal finances which may impact market stability and investor confidence.

According to The Kobeissi Letter, gold prices are rising due to long-term macroeconomic concerns, specifically the US debt crisis and inflation. Since the pandemic, the US national debt has increased by $13 trillion, and the US dollar has depreciated by approximately 25%. These factors are causing market worries, contributing to the bullish trend in gold prices.

According to The Kobeissi Letter, gold prices are experiencing an upward trend due to macroeconomic concerns, particularly focusing on the US debt crisis and inflation. The US national debt has increased by $13 trillion since the pandemic, while the US dollar has depreciated by approximately 25%, causing market anxiety.