This week’s pullback comes after the market recovered from a low of about $828 billion at the end of 2022, a year of widespread bankruptcies and other disruption for digital assets.
Crypto rates extended their slide to 7% for the week, with declines across the board but concentrated on tokens other than market leaders bitcoin and ether as investors appear to be adopting risk-off strategies.
The risk-off feeling was evident in the bonds and securities market on Thursday, where the yield on the 10-year Treasury bond fell 6 basis points to 3.55%.
Investors seem to be reacting to the possibility the United States will default on its debt as the United States and House Republicans struggle over raising the ceiling on borrowing.
The United States reached its $31.4 trillion statutory limit in January, but the Treasury has been able to stave off a crisis with emergency spending reductions.