Bitcoin fell 14% on Monday after Celsius Network, a major US cryptocurrency lending company, froze withdrawals and transfers citing “extreme” conditions, in the latest sign of the financial market downturn affecting the cryptosphere.
The Celsius move triggered a sell-off across cryptocurrencies, with their value falling below $1 trillion for the first time since January 2021, led by bitcoin, the largest token.
Also on Monday, BlockFi, another crypto lending platform, announced a 20% reduction in staff due to a ‘dramatic shift in macroeconomic conditions worldwide.’ Celsius, according to BlockFi, has no exposure and has ‘never worked with them.’
Bitcoin, which soared in 2020 and 2021, is down around 50% this year. This year, Ethereum has dropped by more than 67 percent.
Celsius CEO Alex Mashinsky and Celsius did not immediately respond to requests for comments.
Post Your Comments