$ETH
ETH, DOGE, XRP Down 3% as Moody’s Downgrades U.S. Credit Rating
**Cryptocurrency Markets React to U.S. Credit Downgrade: ETH, DOGE, XRP Fall 3%**
On May 16, 2025, Moody’s Investors Service downgraded the U.S. sovereign credit rating from Aaa to Aa1, citing escalating fiscal deficits, rising interest expenses, and a lack of political consensus to manage spending. This move aligns Moody’s with previous downgrades by Fitch in 2023 and S&P in 2011, marking the first time all three major rating agencies have rated U.S. debt below the top tier.
The downgrade triggered a wave of risk aversion across financial markets. Major cryptocurrencies, including Ethereum (ETH), Dogecoin (DOGE), and XRP, each declined approximately 3% in the immediate aftermath. As of the latest data, ETH is trading at $2,494.35, DOGE at $0.2175, and XRP at $2.38.
Traditional markets also felt the impact, with U.S. Treasury yields rising and S&P 500 futures dipping, reflecting investor concerns over the nation's fiscal trajectory.
The broader crypto market, valued at approximately $3.3 trillion, experienced a pullback from recent highs, highlighting the interconnectedness of digital assets with macroeconomic indicators.
While some analysts view the downgrade as a short-term setback, others suggest it could bolster the long-term appeal of decentralized assets like Bitcoin, positioning them as hedges against fiscal instability.
As the U.S. grapples with its fiscal challenges, market participants will closely monitor policy responses and their implications for both traditional and digital asset markets.