With bitcoin dropping below $23,000, exchanges Celsius and then Binance suspended withdrawals. Fear of “running banks” in the style of cryptocurrency is growing.
The cryptocurrency market is in full swing. Bitcoin, which at the end of November reached a record value of $68,000, continues to decline. On Monday evening, it fell below $23,000, dragging almost every other cryptocurrency in its wake. This is the encryption breakdown.
This significant drop in cryptocurrency values coincides with a bearish trend in the stock market. Currently both are in place Alcohol market.
In the loosely regulated cryptocurrency market, anxiety is growing. Several cryptocurrency exchanges have shown alarming signs. started b Celsius Network, which decided to suspend all withdrawals and transfers between accounts. Customers can no longer withdraw their assets.
“Due to severe market conditions, we are announcing today that Celsius will suspend all withdrawals, trades and transfers between accounts.”
Celsius claims 1.7 million users and $12 billion in assets under management. In recent years, the platform has raised about $750 million from investors, including the Canadian Pension Fund and crypto company Tether. percentage network is Specializes in “lending” (loan) cryptocurrencies. Customers deposit their cryptocurrency on the platform, which then “lends” it to institutional players, for a fee. Celsius pays interest to customers who deposit their cryptocurrency. she told them It promises interest income of up to 18% per annum.
Last week, rumors swirled about A.J Possibility of liquidity shortage on a degree Celsius. will be the platform I was hit hard by a cryptocurrency (Terra) that crashed last month. In the aftermath, Celsius faced an overwhelming influx of withdrawal requests. Investors’ fears have finally come true: Celsius has blocked its clients’ accounts, until further notice, Blame it on ‘extreme market conditions’. The platform asserts that it will compensate its clients once it finds itself “in a better position to fulfill its obligations.” The CEL token, issued by Celsius Network, has seen its value halve.
Later on Monday it was Binance’s role in the bid. After the collapse of the cryptocurrency, its CEO announced the issuance of Complete suspension of bitcoin withdrawals, for nearly 30 minutes, which finally lasted for several hours. Binance is the largest crypto exchange in the world. It has nearly 100 million users. If the ban on Binance is lifted after a few hours, the risk of a “crypto bank run” is still taken very seriously.