Major Cryptocurrencies Drop as U.S. Credit Rating Downgraded by Moody’s
Major cryptocurrencies declined on Saturday following Moody’s downgrading of the U.S. credit rating from Aaa to Aa1, impacting investor sentiment. Key points include:
- Ether (ETH), XRP, and dogecoin (DOGE) fell approximately 3%.
- The total crypto market cap remained at $3.3 trillion after earlier highs.
- Moody’s cited rising deficits, increased interest expenses, and political challenges in its decision.
- The downgrade aligns with similar actions by Fitch and S&P, affecting traditional markets.
- U.S. Treasury yields rose, with the 10-year note hitting 4.49%, while S&P 500 futures dropped 0.6% in after-hours trading.
- Concerns over U.S. debt sustainability may influence bitcoin and decentralized assets positively long-term.
- Short-term sentiment may lead to profit-taking, with analysts predicting potential declines before a rally.
- Bitcoin is currently holding above $104,000 but faces pressure near the upper range.