Moody’s Axes US Credit Rating—Debt Drama Spooks Markets

Wall Street’s favorite buzzkill strikes again. Moody’s just downgraded Uncle Sam’s creditworthiness—because apparently trillion-dollar deficits and political gridlock aren’t ‘AAA’ material anymore.

The fallout? Bitcoin maximalists are already popping champagne, while Treasury yields twitch like a DeFi oracle under load. Remember when ‘full faith and credit’ meant something? Pepperidge Farm remembers.

Here’s the kicker: the downgrade lands as the Fed keeps playing whack-a-mole with inflation. Traditional finance looks shakier by the minute—meanwhile, Bitcoin’s hashrate hits new highs. Coincidence? (Spoiler: no.)

One cynical take: Maybe the real ‘stablecoin’ was the friends we made along the way.

US Credit Rating Downgraded

Moody’s has downgraded the U.S. credit rating from AAA to AA1. This MOVE signals economic risks and points to noteworthy details in the rating agency’s decision document. The United States’ long-term local and foreign currency country ceilings remain at AAA, suggesting that the current financial proposals are not anticipated to significantly reduce mandatory spending.

The nation’s long-term growth isn’t expected to be substantially affected by tariffs. While acknowledging the U.S.’s major economic and financial strengths, these factors no longer fully offset the decline in fiscal metrics. The federal debt burden is projected to rise from 98% of GDP in 2024 to approximately 134% by 2035.

Following the announcement, the DXY index fell to 101, and the S&P 500 dropped to 5,939. However, the cryptocurrency market did not witness any significant volatility.

DOGE and ADA Coin Predictions

Elon Musk’s last DOGE-related update was about 140 days ago. In the previous year, he made two posts on August 5 and December 23, separated by an equal 20-week interval. If a pattern is at play, Musk could make another appearance soon. Setting speculation aside, maintaining the $0.2 support level is promising for DOGE.

Depending on BTC’s price performance, attempts to revisit $0.25 could be anticipated. The main target remains reclaiming $0.293 for a potential peak journey.

For ADA Coin, the crucial long-standing area has been $0.83, where surpassing it might push the target over $1. However, there’s a risk of decline to $0.72. Factoring in the weekend’s lower trading volumes, without positive news from the US, retracement wouldn’t be unexpected.

If ETH crosses the $2,700 mark, it could initiate a phase breaking BTC’s market dominance. Until this occurs, resistance tests in altcoins may remain capped with upper wicks.