Bitcoin and other cryptography prices fell on Monday while the feeling of risk spread on the financial market.
Bitcoin (BTC) fell to $ 102,870 after exchanging near $ 106,000 on Sunday. Ethereum (ETH) fell to $ 2,400, while the total market capitalization of all cryptocurrencies dropped 1.67% to 3.25 dollars.
The sales pressure reflected the wider financial market, with term contracts linked to the NASDAQ 100, RUSSELL 2000 and S&P 500 more than 1%. Dow Jones Future slipped 0.70%.
Bitcoin and crypto prices dropped after the American moody demotion
Actions and the crypto fell as investors reacted to Moody’s decision to demote the American credit rating. On Friday, in a statement, the agency warned that the country’s tax prospects deteriorate.
The American debt clock shows that the national debt increased to more than $ 36.8 billions, compared to 21 billions of dollars in 2020. This figure should increase more following a new agreement to the House on the so-called major bill.
The invoice includes tax discounts estimated at a cost between $ 4.5 billions of dollars and 5 billions of dollars during the next decade, partially offset by expected discounts of $ 1.5 billion to 2 dollars.
Historically, the markets reacted negatively to the downgrades of the notation of the credits of major economies. Actions and cryptocurrencies decreased on August 1, 2023, when Fitch downgraded the United States from AAA to AA +. A similar decision occurred from August 5 to 6, 2011, when S&P Global made the same demotion.
Some analysts, however, have minimized the impact of Moody’s decision. In an article on X, Jim Bianco described the downgrading of “nothing”.
In theory, the deterioration of American public finances is an optimistic catalyst for Bitcoin, an asset which slowly becomes a secure asset. In a long white paper, BlackRock argued that Bitcoin became a good asset to cover itself against the American debt arrow and the growing risk of defect.
Blackrock noted that Bitcoin was a “rare, non -sovereign and decentralized active with a limited supply”.
Since the release of this document, the Bitcoin fundamentals have improved. Supply on exchanges And in the over -the -counter markets, fell on multi -year stockings, while demand via funds negotiated in exchange has increased. Cumulative entries in Bitcoin funds exceeded $ 41 billion.
Other companies also add bitcoin to their treasury bills. Therefore, the prices of bitcoin and cryptography will probably bounce back from this panic. For example, most Altcoins have rallied in recent weeks because the rates of the Liberation Day The fears hid.
