The turmoil in cryptocurrencies such as Bitcoin brings the crypto company Celsius Network into the breach. Due to “extreme market conditions,” Celsius will pause withdrawals and transfers between accounts, the company said in a blog post on Monday. “We are taking this necessary action to stabilize liquidity and operations as we take steps to preserve and protect assets.”
Celsius Network lends cryptocurrencies, issues loans secured with cryptocurrencies and offers savings products for customers who invest their cryptocurrencies with the company. On its website, the company advertises with annual returns of up to 17 percent. As of May 17, the company had settled $8.2 billion worth of loans and $11.8 billion in assets under management, according to the website. At the end of 2021, Celsius Network had secured a $750 million financing.
Bitcoin Falls below $25,000 for the First time since 2020
The interest rate hikes in the US and stronger regulation have put cryptocurrencies under pressure in recent months. In mid-May, a slump in the price of the cyber currency TerraUSD shook the crypto industry.
The turmoil around Celsius Network and the fear of strong interest rate hikes in the US put Bitcoin & Co under pressure on Monday. Bitcoin fell back below the $25,000 mark for the first time since December 2020. The oldest cyberdevise slipped in the top by almost 15 percent to 24,888 dollars. For Ethereum, things went even more downhill. The cryptocurrency was at times about 22 percent lower at $ 1302.