Bitcoin and different cryptocurrencies took one other hit after Celsius, one of many main crypto lending companies, introduced it’s pausing all withdrawals and transfers “due to extreme market conditions.” After the announcement, Bitcoin slid to under $25,000, dipping greater than 12 p.c on Monday to under $24,000. That’s the bottom it has been in 18 months.
“We are taking this necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets. Furthermore, customers will continue to accrue rewards during the pause in line with our commitment to our customers,” the location added.
This has been a tough yr for cryptocurrency traders, or at the least for those who purchased into Bitcoin, Ethereum, Shiba Inu, and different digital currencies when the values had been a lot increased than they’re now. The crypto market’s been crashing laborious and whereas there have been some rebounds right here and there, values proceed to plummet for essentially the most half.
Case in level, the cryptocurrency market has an entire has fallen under the $1 trillion mark for the primary time since January 2021, and after peaking at $2.9 trillion simply seven months in the past. The world crypto market is now at $969.69 billion. That’s a 13 p.c drop over the past day, seemingly sparked partially by Celsius halting transactions.
This is a foul search for the lender, made even worse by an earlier tweet by its founder and CEO, Alex Mashinsky, in response to a consumer saying they’ve heard about accounts being locked.
“Mike do you know even one person who has a problem withdrawing from Celsius? Why spread FUD and misinformation. If you are paid for this then let everyone know you are picking sides, otherwise our job is to fight Tradfi together…,” Mashsinsky wrote two days earlier than Celsius introduced the halt on withdrawals.
Suffice to day, the tweet did not age nicely, and in a really quick time in addition. Celsius customers are furious, as evidenced by the indignant feedback to the announcement, a few of which accuse the lender of being “scammers.”
On the intense facet, those that have their crypto funds tied up will nonetheless accrue rewards. Unfortunately, there is not any readability how lengthy transactions will stay on pause.
“There is a lot of work ahead as we consider various options, this process will take time, and there may be delays,” Celsius says.