Moody's downgraded the U.S. sovereign credit rating from Aaa to Aa1, citing escalating fiscal deficits, rising interest expenses, and a lack of political consensus on spending controls. This downgrade, following similar actions by Standard & Poor's in 2011 and Fitch in 2023, has led to a decline in major cryptocurrencies:
$XRP : $2.33
The downgrade has triggered risk-averse sentiment in the market, causing U.S. Treasury yields to rise and S&P 500 futures to decline, affecting both traditional and crypto markets. Investors are now closely monitoring the situation, as the loss of the last pristine credit rating may have long-term implications for both traditional and digital asset markets