Fitch Downgrades El Salvador’s Issuer Default Rating
While McDonald’s is the latest brand to enter the metaverse, Fitch recently lowered El Salvador’s long-term foreign currency Issuer Default Rating (IDR) to CCC from B-, citing concerns associated with Bitcoin adoption. There has been an increase in policy unpredictability due to weakening institutions and the concentration of power in the president, according to a Fitch commentary.
A 40-year peak in inflation has led to anticipation that the US Federal Reserve may hike interest rates, which sent the global crypto market into freefall this morning. There was a 14.86% drop in the global crypto market capitalization to $1,72 trillion. As of 8.30 a.m., Coinmarketcap reported a 22.42 percent drop in crypto trading volume to $59.07 billion. It was down 1.56 percent at $43,150.77 for Bitcoin (BTC) and down 4.8 percent for Ethereum (ETH).
Even when US markets fell, Bitcoin couldn’t hold a price higher than $44,000. In the medium term, support for the market leader is around $43,000, with resistance likely around $46,000. As a result of Ether’s recent decline, other cryptocurrencies are also trading lower, according to Bitbns CEO and founder, Gaurav Dahake.
Ether is now trading at $3,061.81. Coins such as Cardano (ADA) and Algorand (ALGO), dubbed the Ethereum killer, both fell 3.22 percent to $1.14 and had a market valuation of $6,383,814,313, respectively. At $412.15, Binance Coin (BNB) was down 1.11 percent, while Solana (SOL) dropped 6.21 percent and Polkadot (DOT) down 6.29 percent.
Sonic Token (SONIC) has surged 4764.31 percent to $0.0001432 in today’s trading. WalMeta (WALMETA) was the biggest loss, falling 99.95% to $0.00005428. Dogecoin (DOGE) was trading at $0.1521, down 4.19 percent. It has a volume to market capitalization ratio of 0.05441 percent. At $0.00003052, Shiba Inu (SHIB) was down 5.92 percent.
Elon (ELON) was trading at $0.000001042 with a loss of 4.84 percent. Floki Inu (FLOKI) and Samoyed Coin (SAMO) were both down 14.11 and 5.1 percent, respectively, at $0.00004479 and $0.02781. YFI (yearn.finance) was trading at $24,381.46 with a loss of 4.74% in the DeFi category. There was a 6.38 percent drop in Terra (LUNA) and a 1.45 percent gain in Avalanche (AVAX).
It was down 5.29 percent for Uniswap (UNI) to $11.35, while it was down 4.26 percent for Aave (AAVE).
In the meanwhile, a trademark submitted by McDonald’s with the US Patent and Trademark Office reads “downloadable multimedia files comprising artwork, text, audio, and video files and non-fungible tokens.”
According to entrepreneur.com, this raises the possibility that McDonald’s will be the next brand to enter the metaverse and crypto world. According to Fitch, the long-term foreign currency Issuer Default Rating (IDR) for El Salvador has been downgraded from B- to CCC.
“With a $800 million Eurobond due in January 2023, the government has just $305 million in external debt amortisations in 2022, but $1.2 billion in 2023.”
With a short-term debt rollover of $1.2 billion and approximately $1 billion in multilateral disbursements, Fitch predicts a funding need of $1.2 billion in 2022. By 2023, the deficit is expected to reach $2.5 billion, according to Fitch’s analysis.