Moody's Downgrades U.S. Credit Rating, Impacting Crypto Markets

According to Odaily, Moody's has downgraded the U.S. sovereign credit rating from Aaa to Aa1, citing increased deficits, rising interest expenses, and a lack of political will to control spending. This downgrade has led to a decline in major cryptocurrencies, with Ethereum (ETH), XRP, and Dogecoin (DOGE) each falling by approximately 3%. Currently, ETH is priced at $2,494.35, DOGE at $0.2175, and XRP at $2.38. The downgrade has triggered a risk-averse sentiment in the market, causing U.S. Treasury yields to rise and S&P 500 futures to decline, affecting both traditional and crypto markets. Moody's follows Standard & Poor's in 2011 and Fitch in 2023 as the third major rating agency to lower the U.S. credit rating.