Moody's has downgraded the US credit rating, signaling potential economic risks. This event coincided with the start of the cryptocurrency market over the weekend.
US Credit Rating Downgrade
Moody's has downgraded the US credit rating from AAA to AA1, indicating economic risks. The agency's decision document raises significant details regarding this move. The long-term local and foreign currency country ceilings remain at AAA, suggesting that current financial proposals are not expected to significantly reduce mandatory spending.
> The nation's long-term growth isn't expected to be substantially affected by tariffs. While acknowledging the US'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.
Predictions for DOGE and ADA
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 this pattern holds, Musk could make another appearance soon. Maintaining the $0.2 support level is promising for DOGE.
Cryptocurrency Market Trends
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, a retracement wouldn't be unexpected.
If ETH crosses the $2,700 mark, it could initiate a phase breaking BTC's market dominance.
Moody's downgrade of the US credit rating raises important questions about future economic risks that could impact financial markets and the cryptocurrency sector.
