Bitcoin Spirals Downward as Crypto Lender Celsius Halts Withdrawals

Bitcoin Spirals Downward as Crypto Lender Celsius Halts Withdrawals

Bitcoin and other major cryptocurrencies tumbled on Monday after $12 billion lender Celsius Network halted customer withdrawals

The Wall Street Journal reports, “This year’s rout in bitcoin deepened, with the world’s biggest cryptocurrency dropping below $25,000 amid a broader selloff fanned by concerns about rising U.S. interest rates. Digital currencies fell on Monday in Asia, after a fresh inflation shock heightened investors’ fears that the Federal Reserve could be forced to act more aggressively to tame surging prices."

"As turbulence rippled through the crypto market, a widely used lender to the industry froze customer withdrawals. Celsius Network LLC said it was pausing all withdrawals, swaps between cryptocurrencies and transfers between accounts “due to extreme market conditions,” adds WSJ.

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Celsius is one of the largest players in the crypto lending space, with more than $8 billion lent out to clients and almost $12 billion in assets under management as of May. The group offers users higher-than-average interest rates on their deposits, according to CNBC.

“Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts,” the company said in a memo to clients on Monday.