Bitcoin and other cryptocurrencies have plummeted, and one of the world’s biggest crypto lenders has paused all withdrawals from its platform as the market crash continues apace. Celsius Network, which has 1.7 million customers, said on Monday that “extreme market conditions” have forced it to temporarily halt all withdrawals, cryptocurrency exchanges and inter-account transfers. The company said in a blog post:
“We are taking this necessary action for the benefit of our entire community to stabilize liquidity and operations while taking steps to preserve and protect assets.”
The UK-registered company has about $3.7 billion in assets, according to its website. He pays interest on cryptocurrency deposits, and lends them out to make a return.
The cryptocurrency market has taken a heavy hit in recent months after its pandemic boom turned into collapse. . As the world’s major central banks raised interest rates to tame spiraling inflation, traders rushed to abandon riskier investments, including their volatile crypto assets.
Bitcoin, the world’s most valuable cryptocurrency, is down nearly 16% over the weekend — putting it more than 60% below its all-time high in November last year, when it traded around $69,000, according to data from the Coinbase. Bitcoin dropped below $24,000 on Monday, sending the cryptocurrency to its lowest level since December 2020.
Ether, the second most valuable digital currency, is down 27% since Saturday and has lost more than 70% of its value since November. So-called “stablecoins” – cryptocurrencies tied to the value of more traditional assets – have also been hit. Tether, a popular stablecoin, broke its peg to the US dollar in May, puncturing the view that it could serve as a hedge against volatility.
TerraUSD, a riskier algorithmic stablecoin that used complex code to peg its value to the US dollar, collapsed in the same month, wiping out the savings of thousands of investors. The coin was valued at just over $18 billion in early May before falling, according to data from CoinMarketCap.
Celsius Network did not say when it would allow customers to withdraw their deposits again, only that “it would take time”. Meanwhile, governments are closely watching the fallout from the cryptocurrency crash and may move to protect investors.
“There are many risks associated with cryptocurrencies“U.S. Treasury Secretary Janet Yellen told the Senate last month. She said her department should release a report on the matter.
This article is a translation of the writing by Anna Cooban para o site CNN Business.
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