In the wake of a global sell-off in risk markets, Bitcoin fell below $24,000 on Monday, its lowest level since December 2020.
Fears of market contagion have been raised when Celsius, a crypto loan business, suspended client withdrawals.
According to CoinDesk statistics, the world’s biggest cryptocurrency, bitcoin, fell below the $24,000 barrier and was trading at about $23,575 on Wall Street this morning.
Over the weekend and into Monday morning, the cryptocurrency market lost more than $200 billion. CoinMarketCap data shows that the cryptocurrency market capitalization has fallen below $1 trillion for the first time since February 2021.
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Concerns around Celsius
The market is now worried about a crypto-lending firm named Celsius, which said on Monday that it is halting all withdrawals, swaps, and transfers between accounts “because of extraordinary market circumstances”.
According to Celsius, which claims to have 1.7 million consumers, you may get an 18 percent return on your investment. Celsius is a service that allows users to deposit cryptocurrency. It is then lent to institutions and other investors as a cryptocurrency. Celsius generates income for its users, which results in a return for them.
Even so, Celsius has been harmed by the crypto market sell-off. According to the company’s website, its assets were valued $11.8 billion as of May 17, down from almost $26 billion in October of last year.
Celsius’ own coin, CEL, has fallen more than 50% in the last 24 hours. Cryptocurrency investors are concerned about the viral spread of this drop.
Image: Mahdi Bafande on Unsplash.
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