Today in crypto, Moody’s degrades US credit rating, Bitcoin’s next explosive move could send the asset to $250,000 by the end of 2025, according to analyst Scott Melker, and the co-founder of World Liberty Financial pushes back against US lawmakers’ attempts to probe potential conflicts of interest involving the president.
Moody’s rating agency degrades US credit rating
Moody’s, one of the major credit ratings agencies, downgraded the US government’s creditworthiness from Aaa to Aa1 on May 16, citing increased deficits and a mounting national debt.
According to the announcement, the agency forecasts higher US government debt, fueled by increasing interest expense on the debt, and a lack of cost-cutting measures curtailing government spending. The report noted:
“Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat. In turn, persistent, large fiscal deficits will drive the government’s debt and interest burden higher.”
“The US’ fiscal performance is likely to deteriorate relative to its own past and compared to other highly-rated sovereigns,” the newly revised credit outlook predicted.
Bitcoin to $250K in 2025 ‘totally possible’ — crypto analyst Scott Melker
Bitcoin’s next explosive move could send the asset to $250,000 by the end of 2025, according to Scott Melker, a crypto analyst and host of The Wolf of All Streets podcast.
Speaking in a recent interview, Melker cited growing institutional interest and diminishing volatility as key factors that could drive the next leg up.
“250K this year, totally possible,” Melker said, adding that Bitcoin’s volatility has declined significantly in recent years.
“It used to be about three times as volatile as the S&P. Now it’s less than two times.” He pointed to increased involvement from pension funds and ETF issuers as evidence of a more mature, stable market.
The shift, he argued, reflects a broader trend of institutional adoption. “The more institutional money, the more Wall Street money, the more long-term holders get involved, the less volatility there’s going to be,” Melker explained.
World Liberty Financial brushes off oversight concerns from Congress
Zach Witkoff, one of the co-founders of the Donald Trump family-backed crypto platform World Liberty Financial (WLFI), has rebuffed efforts by US lawmakers to investigate the president’s potential conflicts of interest.
In a May 15 letter to Senator Richard Blumenthal, lawyers for World Liberty Financial claimed a call to investigate the crypto platform was based on “fundamentally flawed premises and inaccuracies.” Witkoff did not specifically address any allegations, claiming that WLFI was “too busy building” for oversight.
“The Company rejects the false choice between innovation and oversight,” said the letter. “What it opposes is the misuses of regulatory authority and uncertainty to suppress lawful innovation.”
Blumenthal, the ranking member of the US Senate Permanent Subcommittee on Investigations, was one of many Democrats calling for investigations and legislative changes in response to Trump’s ties to WLFI, as well as his TRUMP memecoin and its dinner scheduled for the top tokenholders on May 22.
The GENIUS Act, a bill to recognize stablecoins as payment instruments currently being considered in Congress, may be a bellwether for how lawmakers intend to handle the president’s potential conflicts of interest.
cointelegraph.com