The cryptocurrency crash went far!
Famous crypto lending company Celsius has paused withdrawals for the customers activating the contagion of fears into the wider public.
Recently, a crypto market witnessed a huge selloff on Monday morning along with the overall market cap that is dropping below the $1 trillion. This cryptocurrency crash happened for the first time in over a year. Actually, this major sell-off happened after the lending platform Celsius announcement. They announced that they were suspending all the withdrawals due to “Extreme market conditions”.
Key Points of Cryptocurrency Crash After Celsius Announcement
- Bitcoin’s value fell under $24,000, approximately down near 14% as a result of the cryptocurrency crash deepening at the time of scripting. Also, it is the lowest level of crypto in the 18 months following the announcements of Celsius.
- In the midst of the cryptocurrency crash, leading crypto exchange Binance also announced that they are temporarily suspending the Bitcoin Withdrawals due to the stuck transaction that is causing the backlog.
Furthermore, Celsius, after midnight on Monday, announced in a blog post that they are “pausing all withdrawals” [currency] swap and transfers between accounts,”. They have also mentioned they are doing it to meet all the withdrawal obligations in the future.
In addition, after the announcement of Celsius, their own token (CEL) plunged by more than 46%. It was trading at 21 cents. Further, it is massively down around 2$ in early May and $7 in June last year.
Key Background Of the Celsius Announcement
The Celsius announcement accelerated the major sell-off on Monday. The crypto market had been trending downwards over the weekend due to other external economic factors. Crypto investors have been scared by surprisingly high inflation. The expected interest rate hike by the Federal Reserve later this week.
On Friday, the Labor Department released data that showed annual inflation in the U.S. jumped to 8.6% in May.
The unexpected surge is the largest 12-month increase in consumer prices the country has witnessed in over 40 years. The Federal Reserve is set to meet later this week, where it is expected to announce a major hike in key interest rates.
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