Cryptocurrencies are in significant decline! Know the reason this time

Deepak Gupta June 14, 2022
Updated 2022/06/14 at 7:34 AM

The volatility of the price of cryptocurrencies is more than evident, hence all the care and opportunities of this “new” financial segment. The price of bitcoin and other cryptocurrencies suffered a significant drop this Monday. Find out why most digital currencies have devalued.

Cryptocurrencies: Bitcoin dropped more than 16% and ethereum 17%

Bitcoin and other cryptocurrencies are in decline after a cryptocurrency "bank" suspended transfers and withdrawals from the platform, citing "extreme market conditions" as Pplware revealed here.

Bitcoin was trading at around $22,400 (€21,528) at the end of Monday, having dropped more than 16% in the last 24 hours. Ethereum, another popular cryptocurrency, is down around 17%.

On Sunday, Celsius Network - which offers interest-bearing products to customers who deposit cryptocurrencies on the platform, then lend the digital assets for a return - announced the suspension of all withdrawals and transfers between accounts in order to "honor, the long-term withdrawal obligations".

cryptocurrency

Celsius, which has more than 1.7 million customers and more than $10 billion (€9.6 billion) in assets, gave no indication as to when it would allow users to access their funds.

In exchange for customer deposits, the company paid income that exceeded more than 19% on some accounts. This is the second major collapse in the cryptocurrency space in less than two months.

It is possible that investors in Celsius, which include the Quebec (Canada) pension fund and the well-known venture capital fund WestCap, could recoup their investment before other Celsius depositors.

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