Moody’s Downgrades U.S. Credit Rating, Trump Disagrees – Coincu

On May 19th, 2025, Moody’s downgraded the United States’ sovereign credit rating from Aaa to Aa1, marking the first such move since 1917. This decision rattled financial markets, driving a sell-off in U.S. assets.

The downgrade, driven by rising government debt and fiscal deficits, signals elevated risk perception affecting global financial stability and market movements.

Moody’s Downgrades U.S. Credit Rating, Trump Disagrees

Moody’s decision marked a historic moment, demoting the U.S. from its default AAA rating following heightened debt levels and fiscal concerns. This impacted global financial markets, demonstrating increased investor risk aversion. The downgrade noted projections of the fiscal deficit nearing 9% of GDP by 2035.

The United States witnessed immediate market volatility as Moody’s assessment catalyzed swift asset sell-offs. Stocks, treasuries, and the U.S. dollar experienced declines, reflecting heightened investor caution. On the political stage, Trump’s disagreement with Moody’s stance dominated headlines, with a public statement challenging the credit agency’s conclusions.

According to White House Press Secretary Levi, Donald Trump does not agree with Moody’s assessment regarding the U.S. credit rating downgrade: CBS News.

Historical Context and Implications for Digital Assets

Did you know? Moody’s downgrade in 2025 followed a similar sovereign downgrade in 1917, marking significant shifts in U.S. fiscal stability perceptions, triggering similar market reactions.

Bitcoin, prominent among digital assets, was trading at $103,096.26 with a market cap of $2.05 trillion as per CoinMarketCap. Despite a 1.19% dip over the past day, Bitcoin showed a strong 20.74% growth in the past 30 days. The 24-hour trading volume reached $65.77 billion, exhibiting volatility and reflecting global trade patterns.

Coincu’s analysis suggests a challenging market phase ahead, with potential policy shifts and fiscal strategies impacting both traditional and crypto markets. The outcome of credit downgrades may affect global asset allocations, increasing digital asset appeal amid traditional market uncertainties.