Cryptocurrencies are experiencing mass declines in mid-trading on Monday, May 19, the opening session of the week, with a decline in risk appetite in the markets after Moody’s downgraded the United States’ credit rating. Bitcoin, the world’s most valuable digital currency, fell from its highest levels since January, having tested $107,000 at the beginning of the session, to trade at $103,044.
Moody’s announced at the end of last week that it had downgraded the long-term credit rating of the world’s largest economy to Aa1 from AAA, citing a worsening fiscal deficit and increased refinancing burdens amid rising interest rates. The agency joined Fitch and Standard & Poor’s in the new rating for the United States.
US bond yields rose following this downgrade, and safe-haven currencies and assets rose, putting pressure on high-risk assets, most notably cryptocurrencies. Markets and cryptocurrency traders are awaiting a Senate vote this week on the GENIUS Stablecoin Regulation Act, after the bill failed to pass. Republican Senator Hagerty stated that the Senate will make history by passing this bill, which will establish national innovation for stablecoins and will significantly transform the market and boost investor confidence in the long term.
The combined market capitalization of the cryptocurrency market, according to Coingecko, which includes more than 17,000 cryptocurrencies, fell by approximately 3.7% on Monday, bringing the market capitalization to $3.36 trillion.
Bitcoin is trading at $103,044,000, down by approximately 0.79% at midday trading, with a market capitalization estimated at $2.046 trillion. Ethereum, the second-largest cryptocurrency, is down by approximately 3.51%, trading at $2.415,000, with a market capitalization estimated at $291 billion. XRP, or Ripple, continues to maintain its position as the world’s fourth-largest cryptocurrency by market capitalization, declining by approximately 4.48% on Monday, trading at $2.32, with a market cap of approximately $136 billion.
The Chicago Board of Trade (CME) announced the launch of XRP futures contracts, aiming to expand the scope of financial products and open the door for investors to enter the Ripple market without having to purchase the currency directly.
Dogecoin fell by approximately 2.34%, trading at $0.2177, with a market cap of approximately $32 billion, while Cardano lost approximately 4.69%, trading at $0.7253, with a market cap of approximately $25 billion. Solana is losing around 5.18%, trading at $161 with a market cap of $84 billion, while Sui, which moved up to 11th place, is declining around 4.26%, trading at $3.67 with a market cap of $12 billion.