According to Odaily, Moody's has downgraded the U.S. sovereign credit rating from Aaa to Aa1, citing rising deficits, increasing interest expenses, and a lack of political will to control spending. This downgrade has triggered a drop in major cryptocurrencies, with Ethereum (ETH), XRP, and Dogecoin (DOGE) each falling by about 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 markets and cryptocurrency markets. Moody's follows Standard & Poor's in 2011 and Fitch in 2023 as the third major rating agency to downgrade the U.S. credit rating.
