According to The Kobeissi Letter, Moody's has officially downgraded the United States' credit rating for the first time in history, citing concerns over escalating US debt levels and projections that interest payments will reach 30% of government revenue by 2035 (Source: The Kobeissi Letter, May 17, 2025). This downgrade signals increased risk in US Treasury markets, which traditionally serve as a safe haven for global investors. As confidence in US financial stability wavers, traders may see heightened volatility in both traditional markets and cryptocurrencies, with Bitcoin and stablecoins often viewed as alternative hedges against sovereign risk. Market participants should closely monitor capital flows and changes in liquidity as institutional investors may shift allocations toward digital assets in response to perceived weakening of fiat reserves.