Bitcoin’s Decline Continue After Network Freezes Withdrawals And Transfers

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.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

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