ETH, DOGE, XRP decline 3% amid Moody’s announcement on U.S. credit rating cut.

Crypto Market Dips After Moody’s Lowers U.S. Credit Rating, Sparking Investor Caution

On Saturday, cryptocurrencies edged lower alongside equities following Moody’s decision to downgrade the U.S. sovereign credit rating from Aaa to Aa1. The move sparked risk-off sentiment amid growing concerns about the country’s fiscal health and broader economic stability.

Major tokens including Ether (ETH), XRP, and Dogecoin (DOGE) fell approximately 3% as investors assessed the fallout. The overall crypto market cap remained near $3.3 trillion, retreating after briefly touching weekly highs.

Moody’s cited rising national deficits, escalating interest payments, and political reluctance to cut spending as key factors behind the downgrade. With this, Moody’s joined Fitch and S&P in stripping the U.S. of its flawless triple-A credit rating.

The White House swiftly criticized the rating cut, calling it politically motivated in statements from President Donald Trump’s spokespersons.

The downgrade sent ripple effects through traditional markets as well. U.S. Treasury yields surged, with the 10-year bond yield climbing to 4.49%, and S&P 500 futures slid 0.6% during after-hours.

Historically, concerns over U.S. debt and the dollar have often boosted Bitcoin and decentralized assets. However, such credit downgrades can trigger short-term risk aversion, especially as institutional investors may reduce exposure amid macroeconomic uncertainty.

Some analysts predict additional short-term weakness driven by profit-taking. “Bitcoin is maintaining the $104,000 support level, which is encouraging,” said FxPro chief analyst Alex Kuptsikevich. “However, the market is showing signs of pressure near the current range’s upper boundary, suggesting a likely pullback before the next rally.”