Moody’s Downgrade of US Credit Rating Reflected Positively on Crypto Market! Here is the Latest Data

The cryptocurrency market continues its upward momentum. Ethereum (ETH) rose 8% to above $2,900, while Bitcoin (BTC) climbed towards the $106,000 level. Ethereum Up 8%, Bitcoin Nears $108,000: Cryptocurrencies Outperform as Market Unrest Continues This rise came despite the widespread risk aversion in traditional markets following Moody’s downgrade of the US credit rating. The surprising resilience of digital assets has been in sharp contrast to stocks and gold, which have slumped in response to Moody’s downgrade of the U.S. credit rating due to persistent fiscal deficits and rising political polarization. Gold, often a traditional hedge during times of uncertainty, is down about 7% from its May highs, while stocks are also down. Meanwhile, Bitcoin pulled back slightly after briefly touching $107,000 on Sunday. “Despite the risk aversion in stocks following Moody’s downgrade, Bitcoin’s rally over the weekend has strengthened Bitcoin’s position as a legitimate store of value.” Despite Ethereum not being a new catalyst, it outperformed other major tokens on the day, driven by renewed staking interest and sentiment around the recent Pectra update. ETH’s rally has added to the optimism in the altcoin market. Other notable moves included: Solana (SOL), XRP, BNB and Dogecoin (DOGE) are all up between 2-4%. Aave (AAVE) is up over 25%, but the increase appears speculative as no new governance proposals or technical updates have been reported. The DeFi token remains 60% below its 2021 highs. Analysts have noted a developing divergence between bitcoin and traditional hard assets such as gold, which often move together during periods of macroeconomic stress. “Unlike previous months when BTC and gold rose together, bitcoin is rising despite the decline in spot gold prices, and this is reflected in ETF flows.” — Augustine Fan, SignalPlus Fan noted that while gold ETFs have seen recent outflows, bitcoin ETF products have continued to attract capital, including through futures markets on the CME. The divergence could signal a shift in investor preferences and the relative value opportunities emerging between the two stores of value, he added. As global macro uncertainty persists, the strength cryptocurrencies have shown in the face of broader market weakness could further solidify their role in diversified portfolios. *This is not investment advice. Continue Reading: Moody’s Downgrade of US Credit Rating Reflected Positively on Crypto Market! Here is the Latest Data

Source: BitcoinSistemi