S&P Global Ratings has announced a downgrade of Tether's USDT, the widely used stablecoin, primarily citing the recent decline in Bitcoin prices as a significant risk factor that could negatively impact the stablecoin's stability and overall market perception. The rating agency's decision highlights concerns about the potential volatility and uncertainty surrounding cryptocurrencies, particularly the correlation between Bitcoin's performance and the value of Tether's pegged assets. This downgrade may have a ripple effect across the cryptocurrency market, raising alarms for investors and users who rely on USDT for transactions and stable value preservation.
source: https://www.coindesk.com/policy/2025/11/26/s-and-p-downgrades-tether-s-usdt-citing-falling-bitcoin-prices-as-risk