Bitcoin Unmoved as US Credit Rating Downgraded

Despite a downgrade of the U.S. credit rating to Aa1 by Moody’s on Friday, Bitcoin (BTC) remained relatively stable, trading at around $103,000 and showing only a slight dip of 2.8% from its recent high. This modest pullback has brought Bitcoin’s market capitalization down to $2.045 trillion. 2023’s credit rating downgrade came as Moody’s joined two other agencies in downgrading the U.S.’s triple-A rating, citing a worsening fiscal situation. This follows S&P Global’s initial downgrade in 2011 and Fitch Ratings’ move in 2022. The impact of the downgrade is likely to be amplified by ongoing concerns about the US budget deficit.