ETH, DOGE, XRP Drop 3% Following Moody’s U.S. Credit Modification

Summary

On Saturday, notable cryptocurrencies like Ether (ETH), XRP, and Dogecoin (DOGE) saw a decline of about 3%. This downturn followed Moody’s decision to revise the credit rating of the U.S. down to Aa1 from the previous Aaa. Key reasons cited were the escalating deficits and heightened interest expenses, sparking concerns about the country’s fiscal health.

The downgrade resulted in immediate reactions within the markets, where U.S. Treasury yields increased, and S&P 500 futures dipped slightly. The overall cryptocurrency market stabilized around $3.3 trillion after briefly reaching its weekly peak.

Key Points:

Major currencies plummeted by 3% due to Moody’s credit rating downgrade.
The downgrade prompts immediate reactions in both crypto and traditional markets.
Sustainable concerns around U.S. debt could drive continued market volatility.

Quotes:

“Bitcoin is maintaining the $104,000 level as a critical threshold… However, pressure remains around the upper limits of the current range,” said Alex Kuptsikevich, the Chief Market Analyst at FxPro, during a recent statement to CoinDesk.

Implications

This adjustment has now placed Moody’s alongside Fitch and S&P, further impacting the perception of the U.S. economic stability.

Link to full details: CoinDesk