Moody’s U.S. downgrade triggers sell-off
The post Moody’s U.S. downgrade triggers sell-off appeared on BitcoinEthereumNews.com. Bitcoin and other crypto prices dropped on Monday as risk-off sentiment spread across the financial market. Bitcoin (BTC) fell to $102,870 after trading near the $106,000 level on Sunday. Ethereum (ETH) declined to $2,400, while the total market capitalization of all cryptocurrencies dropped by 1.67% to $3.25 trillion. The selling pressure mirrored the broader financial market, with futures tied to the Nasdaq 100, Russell 2000, and S&P 500 all down over 1%. Dow Jones futures slipped by 0.70%. Bitcoin, Ethereum, and Solana prices chart | Source: crypto.news Bitcoin and crypto prices fell after Moody’s US downgrade Stocks and crypto fell as investors reacted to Moody’s decision to downgrade the US credit rating. In a statement on Friday, the agency warned that the country’s fiscal outlook was deteriorating. The US Debt Clock shows the national debt has risen to over $36.8 trillion, up from $21 trillion in 2020. That figure is expected to rise further following a new agreement in the House on the so-called Big, Beautiful Bill. The bill includes tax cuts estimated to cost between $4.5 trillion and $5 trillion over the next decade, partially offset by projected spending cuts of $1.5 trillion to $2 trillion. Historically, markets have reacted negatively to credit rating downgrades of major economies. Stocks and cryptocurrencies declined on August 1, 2023, when Fitch downgraded the U.S. from AAA to AA+. A similar move occurred on August 5–6, 2011, when S&P Global made the same downgrade. Some analysts, however, downplayed the impact of Moody’s decision. In a post on X, Jim Bianco called the downgrade a “nothingburger.” Why the Moody’s downgrade of the US SHOULD BE a nothingburger—- In August 2011, S&P went first and downgraded the US from AAA to AA+. All hell broke loose. The reason hell broke loose was a lot of…
The post Moody’s U.S. downgrade triggers sell-off appeared on BitcoinEthereumNews.com.
Bitcoin and other crypto prices dropped on Monday as risk-off sentiment spread across the financial market. Bitcoin (BTC) fell to $102,870 after trading near the $106,000 level on Sunday. Ethereum (ETH) declined to $2,400, while the total market capitalization of all cryptocurrencies dropped by 1.67% to $3.25 trillion. The selling pressure mirrored the broader financial market, with futures tied to the Nasdaq 100, Russell 2000, and S&P 500 all down over 1%. Dow Jones futures slipped by 0.70%. Bitcoin, Ethereum, and Solana prices chart | Source: crypto.news Bitcoin and crypto prices fell after Moody’s US downgrade Stocks and crypto fell as investors reacted to Moody’s decision to downgrade the US credit rating. In a statement on Friday, the agency warned that the country’s fiscal outlook was deteriorating. The US Debt Clock shows the national debt has risen to over $36.8 trillion, up from $21 trillion in 2020. That figure is expected to rise further following a new agreement in the House on the so-called Big, Beautiful Bill. The bill includes tax cuts estimated to cost between $4.5 trillion and $5 trillion over the next decade, partially offset by projected spending cuts of $1.5 trillion to $2 trillion. Historically, markets have reacted negatively to credit rating downgrades of major economies. Stocks and cryptocurrencies declined on August 1, 2023, when Fitch downgraded the U.S. from AAA to AA+. A similar move occurred on August 5–6, 2011, when S&P Global made the same downgrade. Some analysts, however, downplayed the impact of Moody’s decision. In a post on X, Jim Bianco called the downgrade a “nothingburger.” Why the Moody’s downgrade of the US SHOULD BE a nothingburger—- In August 2011, S&P went first and downgraded the US from AAA to AA+. All hell broke loose. The reason hell broke loose was a lot of…
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