The National Weather Service has downgraded Sandy from a hurricane to a tropical storm, as maximum sustained winds dropped to near 70 mph early Saturday.
It warns that "widespread impacts" are still expected into next week for the U.S. East Coast.
The drop in maximum sustained winds pushed Sandy below the threshold for being classified as a hurricane. However, the weather service said it was possible that the storm could regain strength by Sunday night.
Sandy was expected to make landfall early Tuesday near the Delaware coast, then hit two winter weather systems as it moves inland, creating a hybrid monster storm that could bring nearly a foot of rain, high winds and up to 2 feet of snow.
Experts said the storm could be wider and stronger than Irene, which caused more than $15 billion in damage, and could rival the worst East Coast storm on record.
As it spun away from the Bahamas late Friday, Sandy was blamed for more than 43 deaths across the Caribbean. The 18th named storm of the Atlantic hurricane season hit the Bahamas after cutting across Cuba, where it tore roofs off homes and damaged fragile coffee and tomato crops.
The Associated Press contributed to this report.
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