XRP and DOGE Price Update: Dogecoin and Ripple Drop 3% Following Moody’s Credit Rating Downgrade for the U.S.

Major tokens slumped Saturday as investors assessed the implications of Moody’s Ratings downgrading the U.S. credit score, with ether (ETH), XRP, and dogecoin (DOGE) each dropping roughly 3%. The broader crypto market held at $3.3 trillion, paring earlier gains after briefly touching the week’s high.

This shift followed Moody’s decision to cut the U.S. sovereign credit rating to Aa1 from Aaa, citing the country’s growing deficits, rising interest expenses, and a lack of political will to manage spending. The rating agency now joins Fitch and S&P in assigning a rating below the previously unblemished triple-A status held by the world’s largest economy.

The White House swiftly responded, with representatives for President Donald Trump criticizing the decision as politically motivated. The downgrade had an immediate effect on traditional markets: U.S. Treasury yields soared, with the 10-year note rising to 4.49%, while S&P 500 futures dipped 0.6% in after-hours trading.

Historically, concerns about U.S. debt sustainability and dollar debasement have usually benefited bitcoin and other decentralized assets. However, credit downgrades can trigger short-term risk-off behavior, especially if macroeconomic uncertainty leads institutional traders to reduce their exposure.

Meanwhile, some traders warned of a potential deeper sell-off in the near term due to general profit-taking before any upcoming rallies. “Bitcoin is holding the $104,000 mark as a key level and the positive factor is that sellers have not yet managed to seize control of the market,” Alex Kuptsikevich, the FxPro chief market analyst, noted in an email. “However, resilience at high levels may be temporary before the next bounce, and there is considerable pressure near the upper boundary of the current range.”

“In other words, the short-term outlook suggests a decline from current levels,” Kuptsikevich added.