Bitcoin fell on Monday away from a four-month peak on profit-taking as investors shun riskier assets.
The decision by Moody’s to cut the US credit rating sent US treasury yields surging as traders bought up safe US treasury notes.
The Price
Bitcoin fell 4.15% at Bitstamp today to $102,126, with January 24 highs at $107,115.
On Sunday, bitcoin rose 3.3%, the first profit in three days.
Bitcoin rose 2.5% last week, the sixth weekly profit in a row, and the longest such streak of weekly gains since late 2023 amid a positive sentiment back then with US-China trade tensions diminishing.
Crypto Market Value
The market value of cryptocurrencies fell by $60 billion on Monday to a total of $3.343 trillion today.
US Credit Rating
Moody’s cut US sovereign rating by one notch on Friday, becoming the last major rating agency to do such a step.
Moody’s pointed to the growing US debt burden, which reached a record $36 trillion, reflecting the structural fiscal challenges facing the world’s largest economy.
US Yields
US 10-year treasury yields rallied 2.5% on Monday to a six-week high at 4.560%, hurting risk sentiment in the markets.
US President Donald Trump once again called on the Federal Reserve to cut rates soon as a necessary measure to support the US economy against increasing global challenges.
The US dollar skidded in European trade on Monday to a two-week trough against a basket of major rivals under heavy selling pressures after US credit rating downgrade.
US President Donald Trump once again called on the Federal Reserve to cut rates soon as a necessary measure to support the US economy against increasing global challenges.
The Index
The dollar index fell 0.9% today to 100.06, the lowest since May 9, with a session-high at 100.98.
On Friday, the index rose 0.2%, the second profit in three days following aggressive US inflation forecasts data.
The index rose 0.55% last week, the fourth weekly profit in a row as US recession concerns diminished after the US-China deal to pause tariffs for 90 days.
US Credit Rating
Moody’s cut US sovereign rating by one notch on Friday, becoming the last major rating agency to do such a step.
Moody’s pointed to the growing US debt burden, which reached a record $36 trillion, reflecting the structural fiscal challenges facing the world’s largest economy.
Trade Developments
US Treasury Secretary Scott Bessent stated on Sunday that President Donald Trump will reimpose the reciprocal tariffs announced last month on trade partners who don’t negotiate with a good intention.
US Rates
US President Donald Trump once again called on the Federal Reserve to cut interest rates in posts on his social media accounts.
According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in June stood at just 8%.
The odds of a 0.25%% Fed rate cut in July stood at 37%.
Traders now expect 50 basis points overall of Fed rate cuts this year, likely starting in October.
Sources indicated the UK and the EU finally reached an agreement on Monday to reset their ties following the raucous British exit from the union in 2020.
UK Prime Minister Keir Starmer is hosting European Commission President Ursula von der Leyen alongside other senior EU officials in a long-awaited summit in London.
An EU official said a mutual agreement on fishing water, extended to June 30, 2038, was reached, in addition to other deals on energy cooperation, security and defense partnership.
A document that Reuters was made privy to also showed the two sides agreed to work together to make it easier for young people to move, live, and work all over the continent in a step aimed at strengthening cultural ties.
Gold prices rose 1.5% in European trade on Monday, resuming its recovery from a five-week low while the dollar loses ground against major rivals.
It comes after the US credit rating downgrade, which renewed concerns about the US financial stability and raised the challenges facing US policymakers.
The Price
Gold prices rose 1.5% today to $3249 an ounce, with a session-low at $3203.
On Friday, gold shed 1.15% and approached five-week lows at $3120 an ounce.
The precious metal also lost 3.7% last week, the third weekly loss in four weeks, and the heftiest in 2025 as haven demand dropped with US-China trade tensions receding.
US Dollar
The dollar index fell 0.8% on Monday, plumbing two-week lows at 100.19 against a basket of major rivals.
A weaker dollar makes the greenback-denominated gold futures cheaper to holders of other currencies.
US Credit Rating
Moody’s cut US sovereign rating by one notch on Friday, becoming the last major rating agency to do such a step.
Moody’s pointed to the growing US debt burden, which reached a record $36 trillion, reflecting the structural fiscal challenges facing the world’s largest economy.
Trade Developments
US Treasury Secretary Scott Bessent stated on Sunday that President Donald Trump will reimpose the reciprocal tariffs announced last month on trade partners who don’t negotiate with a good intention.
US Rates
US President Donald Trump once again called on the Federal Reserve to cut interest rates in posts on his social media accounts.
According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in June stood at just 8%.
The odds of a 0.25%% Fed rate cut in July stood at 37%.
Traders now expect 50 basis points overall of Fed rate cuts this year, likely starting in October.
SPDR
Gold holdings at the SPDR Gold Trust fell 8.89 tons on Friday to a total of 918.73 tons, the lowest since March 20.