Bitcoin Price: Explosive $250K Prediction Amid US Credit Downgrade & WLFI Scrutiny
Stay informed on the fast-moving world of crypto. Today’s crypto news brings significant developments impacting markets, regulations, and price outlooks. We cover a major US financial shift, a bold Bitcoin price forecast, and a notable response from a crypto platform facing congressional inquiry.
US Credit Rating Downgraded: What it Means
In a significant move affecting the broader financial landscape, Moody’s, a leading credit ratings agency, has downgraded the US credit rating. The rating dropped from Aaa to Aa1 on May 16. This decision was primarily attributed to concerns over increasing deficits and the rising national debt, which currently exceeds $36 trillion.
Moody’s analysis projects larger government deficits over the next decade. This is expected due to rising entitlement spending and relatively flat government revenue. The agency noted that this trend is likely to drive the government’s debt and interest burden higher, suggesting a deterioration in the US fiscal performance compared to its historical standing and other highly-rated nations.
Is a $250K Bitcoin Price Possible by 2025? Scott Melker Weighs In
Amidst market discussions, analyst Scott Melker, host of The Wolf of All Streets podcast, offered an optimistic outlook for Bitcoin. Melker suggested that Bitcoin’s next significant move could propel its price to $250,000 by the end of 2025. He highlighted two key factors supporting this forecast:
- Growing institutional interest: More large financial players, including pension funds and ETF issuers, are entering the market.
- Diminishing volatility: Bitcoin’s price swings have become less extreme relative to traditional assets like the S&P 500.
Melker stated, “250K this year, totally possible,” noting that Bitcoin’s volatility is now less than twice that of the S&P, down from about three times previously. He argued that increased institutional involvement and long-term holders contribute to a more mature and stable market environment, which could support substantial price appreciation.
World Liberty Financial Responds to Congressional Scrutiny
In other notable crypto news, World Liberty Financial (WLFI), a crypto platform associated with the Donald Trump family, has pushed back against inquiries from US lawmakers. Zach Witkoff, a co-founder, addressed concerns raised by Senator Richard Blumenthal regarding potential conflicts of interest involving the president.
In a letter dated May 15, lawyers for World Liberty Financial contended that the call for investigation was based on “fundamentally flawed premises and inaccuracies.” While not directly addressing specific allegations, Witkoff indicated that WLFI was focused on building its platform. The letter asserted that the company rejects the idea of choosing between innovation and oversight but opposes the misuse of regulatory authority to suppress lawful innovation.
Senator Blumenthal, the ranking member of the US Senate Permanent Subcommittee on Investigations, is among several Democrats calling for probes and legislative action concerning Trump’s ties to WLFI, his TRUMP memecoin, and related events.
Summary of Today’s Key Crypto Events
Today brought a mix of macroeconomic news and crypto-specific developments. The downgrade of the US credit rating by Moody’s signals potential long-term fiscal challenges for the US. Simultaneously, a bullish Bitcoin price prediction from Scott Melker, citing institutional adoption and reduced volatility, offered optimism for the asset’s future. Finally, World Liberty Financial‘s firm response to congressional oversight highlights the ongoing intersection of crypto platforms and political scrutiny in the US.
