ETH, DOGE, XRP Down 3% as Moody’s Downgrades U.S. Credit Rating

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Major tokens slumped Saturday as traders digested the implications of Moody’s Ratings downgrading the U.S. credit score rating, with ether (ETH), XRP, and dogecoin (DOGE) dropping roughly 3%.

The broader crypto market held at $3.3 trillion, paring earlier beneficial properties after briefly touching the week’s excessive.

The transfer got here after ranking big Moody’s reduce the U.S. sovereign credit standing to Aa1 from Aaa, citing the nation’s swelling deficits, rising curiosity bills, and a scarcity of political will to rein in spending.

The agency now joins Fitch and S&P in assigning a ranking beneath the once-unblemished triple-A standing lengthy held by the world’s largest financial system.

As such, the White House was fast to reply, with spokespersons for President Donald Trump criticizing the choice as politically motivated.

The downgrade had a direct impact on conventional markets: U.S. Treasury yields jumped, with the 10-year be aware rising to 4.49%, whereas S&P 500 futures dipped 0.6% in after-hours buying and selling.

Historically, issues about U.S. debt sustainability and greenback debasement have served as tailwinds for bitcoin and different decentralized property. However, credit score downgrades can even set off short-term risk-off habits, notably if macro uncertainty leads institutional merchants to scale back publicity.

Meanwhile, some merchants warned of a deeper sell-off within the close to time period on basic profit-taking earlier than the subsequent rally.
“Bitcoin is holding the $104,000 mark as a key level and the positive factor is that sellers have not yet managed to seize control of the market,” Alex Kuptsikevich, the FxPro chief market analyst, instructed CoinDesk in an e-mail. “However, resilience at high levels may be temporary before the next bounce, and there is considerable pressure near the upper boundary of the current range.”
“In other words, the short-term outlook suggests a decline from current levels,” Kuptsikevich opined.

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