According to Crypto Rover, the Federal Reserve has stated that the recent U.S. debt downgrade will lead to higher costs of capital, warning that this effect could ripple through the broader economy (source: Crypto Rover on Twitter, May 19, 2025). For crypto traders, higher capital costs often translate to increased market volatility and risk-off sentiment, as investors may seek alternative assets such as Bitcoin and Ethereum during periods of economic uncertainty. This development could drive renewed interest in cryptocurrencies as a hedge against traditional financial instability, influencing trading volumes and price movements across major digital assets.