Crypto Market On Edge as Moody’s Downgrades US Credit Rating

Crypto market remains on the edge as ratings agency Moody’s downgrades the United States credit ratings for the first time in history. This decision comes citing “unsustainable” US federal debt, along with the interest rate burden.

Altcoins have specifically come under partial selling pressure today with ETH, SOL, XRP, DOGE losing 2% each, as investors take a cautious approach.

Crypto analyst Ali Martinez has highlighted a notable trend in stablecoin activity on Binance, with reserves fluctuating within a tight range of $30 billion to $34 billion.

This stability in supply highlights that investors are maintaining a cautious stand, opting to hold the stablecoins instead of rotating it back into crypto. Amid the uncertain market conditions, investors are less willing to take additional risks.

On the other hand, all eyes are currently on the passing of the stablecoin act aka the GENIUS Act, as the bill moves ahead for a ‘cloture vote’ in the Senate.

Crypto market veterans like Coinbase CEO Brian Armstrong have been actively working to make this bill a reality.

Amid the crypto market consolidation, Bitcoin price has remained range-bound and has been oscillating at $103,500 for more than week now.

Crypto analyst Ali Martinez writes: “Based on the pricing bands, key support for Bitcoin $BTC sits at $98,131, while major resistance could be found at $116,900.

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