Bitcoin (BTC) surged to a four-month high of $105,000 on May 19, 2025, driven by macroeconomic shifts and renewed investor interest. The rally coincided with Moody’s decision to downgrade the U.S. sovereign credit rating from Aaa to Aa1, citing concerns over rising debt and interest payments.
This downgrade, following similar actions by S&P and Fitch, led to a decline in the U.S. dollar and increased demand for alternative assets like Bitcoin. Additionally, optimism over easing trade tensions between the U.S. and China, along with expectations of a Federal Reserve rate cut due to subdued inflation data, further bolstered Bitcoin’s appeal.
Institutional interest also played a role, with Coinbase Global Inc. becoming the first digital asset company to join the S&P 500 index, signaling growing mainstream acceptance of cryptocurrencies.
