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2025-05-17
12:45
Moody's US Credit Downgrade Highlights Unsustainable Debt Path: Implications for Crypto Market in 2024

According to Moody's, the recent US credit downgrade is driven by concerns similar to those cited by Fitch in 2023, focusing on the rapidly increasing US debt. Moody's projects the US deficit will rise from 6.4% of GDP in 2024 to 9% by 2035, indicating a worsening fiscal outlook (source: Moody's, 2023). This unsustainable fiscal path is expected to increase market volatility, which often leads to higher interest in cryptocurrencies as alternative assets. Traders should monitor the US fiscal situation closely, as further downgrades or negative outlooks may result in bullish momentum for safe-haven digital assets such as Bitcoin and Ethereum (source: Moody's, 2023).

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