July 7, 2022

Bitcoin price: Celsius stops trading, Accounting stops some withdrawal


London
CNN Business

Bitcoin and other cryptocurrencies continued to fall on Tuesday as investors anticipated risky assets. Sharp rise in interest rates To deal with inflation.

The veins are still green after the two largest veins in the world Cryptocurrency The platforms restricted activity on Monday Market decline Continued fast.

The Celsius Network, which has 1.7 million customers, said it was forced to suspend all withdrawals, crypto transfers and transactions between accounts due to “high market conditions”.

“We are taking this necessary step for the benefit of our entire community and to stabilize cash flow and operations, while at the same time taking steps to protect and safeguard assets,” the company said in a blog post.

The UK-based company has assets of about $ 3.7 billion, according to its website. It pays interest on cryptocurrency deposits and lends them back.

“The cessation of Celsius yesterday gave an additional negative momentum,” said Jeffrey Haley, senior market analyst at Asia Pacific, Oanda. “Psychologically I can only guess that the next big level for Bitcoin would be $ 20,000.”

The cryptocurrency market has taken a turn Hammer In recent months its epidemic boom has changed bust. The world’s major central banks have raised interest rates to control them Spiral inflationMerchants have rushed Push risky investmentsIncluding their volatile crypto assets.

Bitcoin, the world’s most valuable cryptocurrency, fell nearly 8% to $ 23,000 on Tuesday. It has lost about 25% of its value since Friday – down 67% Rose all the time In November last year, according to Coinbase data, about $ 69,000 was traded.

Ether, the second most valuable digital currency, fell 4%, taking its losses to about 32% since Friday. It has lost 75% of its value since November.

Finance, the world’s largest cryptocurrency exchange, stopped withdrawing from its Bitcoin network for a few hours on Monday. The company said some transactions were “stuck” and caused a setback.

“The Binance Group provides a long-term solution to expedite pending transactions on the Bitcoin (BTC) network and to prevent similar situations in the future,” it said in a statement.

The so-called “staple coins” – cryptocurrencies tied to the value of the most traditional assets – have been successful. Tether, a popular staple coin, broke its stake against the US dollar in May, piercing the view that it would act as a hedge against volatility.

TerroyST, a risky algorithmic staple coin, used a complex index to calculate its value against the US dollar, which fell in the same month, wiping out the savings of thousands of investors. According to data from CoinMarketCap, the currency was valued at more than $ 18 billion at the beginning of May.

The Celsius Network did not say when it would allow customers to withdraw their deposits, only that it was “time consuming”.

Meanwhile, governments are closely monitoring the fall in cryptocurrency downturn and may take steps to protect investors.

“There are many risks associated with cryptocurrencies,” U.S. Treasury Secretary Janet Yellen told the Senate last month. He said his department is yet to release a report on this.

Julia Horowitz contributed to the reporting.