The Moody's earthquake in the markets: "Pay attention to Gold and Bitcoin"

The repercussions of Moody's lowering the credit rating of the United States from the highest level of Aaa to aa1 continue. The credit rating agency stated that it made this decision due to the increasing cost of financing the federal government's budget deficit and the rising expense of refinancing existing debt in a high-interest environment.

Moody’s was the last agency to keep the U.S. credit rating at the highest level. Thus, the 116-year-old organization has come in line with rival rating agencies. Previously, Standard & Poor’s and Fitch Ratings had downgraded the U.S. credit rating. Moody’s had maintained the highest rating for the U.S. since 1949.

Economics journalist Michelle Makori emphasized the need to monitor especially Bitcoin and gold following this development, implying that the prices of both assets could experience an increase. According to Makori, Moody's move creates a favorable environment for a rise in Bitcoin and gold.

Makori pointed out that the U.S. budget deficit is currently 1.05 trillion dollars, the 10-year bond yield is at 4.48 percent, and the U.S. interest burden is significantly higher than that of comparable countries, stating, "The U.S. now shares the same credit rating as Austria and Finland. Solid assets do not lie. Pay attention to gold and Bitcoin."

Published: May 17, 2025 14:45