According to Moody's, the measure responds to an increase in deficit and public debt. Several cryptocurrencies of the top fell between 3% and 5% in just 24 hours. The main cryptocurrencies, such as Ether (ETH), XRP of Ripple and Dogecoin (Doge), experienced an approximate 3% to 5% drop on Saturday, after the decision of Moody's Ratings to reduce the sovereign credit rating of the United States from AAA to AA1. The measure, which is quoted in a report published this May 16 the increase in deficits, the growing interest expenses and the lack of political will to control spending, had an immediate impact on traditional and cryptocurrency markets. The document explains that for a decade «the US federal debt has increased abruptly due to continuous fiscal deficits,» citing the pressure of higher interest rates. «This reduction of a scale on our qualification scale of 21 steps reflects the increase for more than a decade of public debt and interest payments to significantly higher levels than sovereigns with similar qualifications,» he adds. The Ether, Cryptocurrency of Ethereum and the second for market capitalization, receded 5.80% in the last 24 hours, Although its balance in the last 7 days remains positive, with about 2% revaluation in that period. Its price is located at $ 2,450 at the time of writing.
Ether is the only top 10 cryptocurrency that did not have a negative balance in the last 7 days. Source: Coinmarketcap. As Cryptonotics reported, Ethereum experienced the greatest code update of recent times, called Pectra. As a consequence, the network has increased its activity and the burning of tokens, which promoted the value of the Ether. For its part, XRP had a 4.5% retraction this Saturday, from 2.43 to 2.32 dollars per Token. This despite a rebound to $ 2.61 in the middle of the week, which reaffirmed the trend of the last 5 weeks.
The XRP price rebound this week. Source: CoinmarketCap The XRP bullish trend had been anticipated by the formation of a bullish flag identified at the beginning of May, as this media reported, after the launch of 3 new ETFs of XRP was announced at the end of April, added to other requests of this type of financial product. The formation of this technical analysis pattern is characterized by a strong initial movement, followed by a consolidation phase, where the maximum and minimum prices are narrowed to converge in a point. When this pattern is resolved, there is usually a significant upward movement, as seen in the following image. However, the macroeconomic context seemed to be braking the impulse of this market. Only with the resolution of the flame «tariff war», which this week reached a 90 -day break between the USA and China, the price of XRP reached maximums that were not seen since mid -March, so the analysis of this medium suggests that it could be the chipa that was missing. Another currency that took a step back, with the reduction of the US credit rating. Uu. It was Dogecoin. Your contraction reached 6.7% in 24 hours, turning its price up to 0.21 dollars.
After a substantial rise in the price during May, the Token experiences a fall. Source: Coinmarketcap. The Token reached the mark of 2 dollars at the beginning of May and seemed to have consolidated its change of trend this week. The explanation is at a 10 -day exponential (EMA) mobile average rise, which remained above 20 days, having crossed it upwards at the end of April. This reflects a sign of strength from the technical analysis, so it remains to be expected if today's fall is only temporary. The relevance of this technical signal is that, when the 10 -day EMA exceeds and remains above 20, it indicates that the short -term impulse is gaining strength. In practical terms, he suggests that buyers are dominating the market in an increasingly sustained way. Because most of the main cryptocurrencies experienced price fall, The market, valued at 3.3 billion dollars, lost part of recent profits, after reaching a weekly maximum.
The reduction of Moody's of the Credit Qualification of the US With the 10 -year bonus rising to 4.49%, and a 0.6% drop in the futures of the S&P 500 during operations off hours.
Political and economic context
The White House, through Donald Trump's spokesman Steven Cheung, said in X that «nobody takes their analysis' seriously,» pointing to the Moody's Analytics economist, Mark Zandi, although Moody's Ratings is a separate entity. The reduction coincided with a setback in Congress for a Trump tax and expenses bill, blocked by Republicans who demanded deeper spending cuts. The extension of the 2017 tax cuts, considered the base case of Moody's, could add 4 billion dollars to the primary fiscal deficit in the next decade. Although historically the concern for the sustainability of American debt has promoted decentralized assets such as Bitcoin, Credit sales usually generate short -term risk aversion. The reduction reflects the decrease in foreign demand for treasure bonds and the growing volume of debt to refinance. Darrell Duffie, former member of the Moody's Board, stressed the need for fiscal discipline through greater income or spending cuts.
Market prospects
Alex Kuptsikevich, FXPro Market Chief Analyst, warned that, although Bitcoin remains at a key level of USD 104,000, there is a possibility of a possible deepest fall in the short term due to the taking of earnings. «Resilience at high levels could be temporary before the next rebound, with considerable pressure near the upper limit of the current range,» he said. Despite macroeconomic uncertainty, some analysts suggest that the devaluation of the dollar could benefit long -term cryptocurrencies, although volatility persists in the immediate horizon.
