Moody’s Downgrades U.S. Credit Rating to Aa1 – Crypto & Markets React
Summary:
Moody’s has officially downgraded the U.S. sovereign credit rating from Aaa to Aa1.
Reasons cited:
Rising fiscal deficits
Interest expense surge
Persistent political gridlock over spending controls
Market Impact:
Crypto slide:
ETH: $2,494.35 (↓3%)
XRP: $2.38 (↓3%)
DOGE: $0.2175 (↓3%)
Traditional markets:
S&P 500 futures fell
U.S. Treasury yields rose
Risk-off sentiment surged
Context:
Moody’s becomes the third major rating agency to lower the U.S. credit rating, following:
S&P in 2011
Fitch in 2023
Why it matters:
The downgrade increases borrowing costs and market uncertainty, potentially accelerating volatility in both equity and digital asset markets. It also undermines confidence in the U.S.'s long-term fiscal stability.
