Bitcoin and other cryptocurrencies suffered another decline after U.S. cryptocurrency lending company Celsius Network froze withdrawals and transfers.
Bitcoin fell as much as 14 per cent to an 18-month low of $22,725 following the announcement, but the cryptocurrency recovered slightly to around $24,265. The second most valuable cryptocurrency by market cap ether also fell as much as 18% to $1,176, its lowest level in January 2021.
Celsius Network said in the announcement that “extreme” market conditions were the necessary factors for its decision.
Celsius Network has assets of approximately $11.8 billion and is one of the largest cryptocurrency lending companies in the United States. The company offers interest-based products to customers who deposit cryptocurrencies with its platform. The company then lends cryptocurrencies to achieve a return on investment.
Celsius Network’s move follows the collapse of TerraUSD and Luna tokens in May, followed shortly after by Tether, the world’s largest stablecoin, which briefly broke its 1:1 peg with the dollar.