After Crypto Lender Celsius Blocks All Redemptions, Bitcoin Crashes

Citing “extreme market conditions,” crypto lender Celsius blocked customers from withdrawing funds from its platform.

Following his lead, Binance also halted bitcoin withdrawals, blaming a “stuck transaction”, while digital assets fell in price.

Amid a surge in inflation and signals from major central banks that they will drastically cut stimulus, Bitcoin, Ether and other major tokens have faltered in recent weeks.

According to Bloomberg, the price of bitcoin fell 10.3% on Tuesday to hit an 18-month low of $20,823.56.

Earlier, after signs of strain were displayed in the infrastructure, which underpins the digital asset market, there was a sharp drop in bitcoin price the previous day.

Cory Klippsten, managing director of Swan Bitcoin, a bitcoin savings platform, told Reuters news agency that “almost anything can be systemic in crypto…because the whole space is overexploited.”

In the latest sign of a financial market downturn hitting the crypto sphere, companies exposed to cryptocurrencies have warned that falling token prices could have ripple effects.

US inflation data released last Friday prompted investors to increase their bets on Federal Reserve rate hikes and as a result markets extended the sell-off.

Briefly breaking its 1:1 peg to the dollar, Tether, the world’s largest stablecoin, crashed, followed by terraUSD and luna tokens in May, rattling cryptocurrency investors.

(With agency contributions)

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Post expires at 9:18am on Friday June 24th, 2022