(Boursier.com) — The wave of risk aversion sweeping the financial markets swept away cryptocurrencies on Monday, starting with the most important, the bitcoins. The latter fell below the $25,000 mark on Monday morning and approached $23,000 in the evening, the lowest for 18 months, and very far from its record of more than $68,000 last November. The sector is weighed down by the setbacks of the American cryptocurrency lending platform, Celsius Networkwhich announced a freeze on withdrawals citing “extreme market conditions”.
Monday evening, the BTC thus yielded more than 15% over 24 hours, around $23,170, while Leave her unscrewed by nearly 18% to $1,244, and widened its losses to 33% over one week. the Binance Coin dropped 14.5% to $226.30, accumulating a 25% correction over one week. the MVIS CryptoCompare 100 Digital Assets Index, a measure of 100 top tokens, was down 10% over 24h.
Monday morning, the American cryptocurrency lending platform Celsius Network has therefore caused panic in the sphere of “cryptos” by announcing the freezing of withdrawals due to “extreme market conditions”. On its blog, the company explained that it froze withdrawals and transfers between accounts “to stabilize liquidity and operations while we take steps to preserve and protect assets.” “We work with one priority: to protect and preserve assets to meet our obligations to customers,” she added.
$750 million raised in fall 2021 from investors
In mid-May, Celsius Network had $8.2 billion in loans and $11.8 billion in assets, according to its website. The company offers to pays high interest rates to its customers who deposit cryptocurrency with it, and it lends cryptocurrency to other companies in the “crypto” market or to investors, in exchange for commissions.
Celsius had risen in November 2021 $750 million from investors, including the Caisse de dépôt et placement du Québec (CDPQ), the 2nd largest pension fund in Canada…
Cryptocurrency lending has seen steady growth in recent months, which has garnered the attention of financial regulators, particularly in the United States.
Second earthquake in a month for the “crypto” planet
Crypto-asset markets had seen another strong security just a month ago, with the collapse of the Terra blockchain environment. Cryptocurrency prices had suffered from the crash of the stablecoin UST and the cryptocurrency Luna, both managed by the Terra blockchain.
These two cryptocurrencies had lost almost all of their value in a few days, ruining many investors and seriously shaking confidence in cryptocurrencies, and in particular “stablecoins”, which are supposed to maintain a parity of 1 for 1 with their assets of reference.
On Twitter, Celsius’ competing platform, Nexo, said on Monday it had offered to help Celsius but was turned down, saying it was working on a possible asset takeover offer. Celsius chief executive Alex Mashinsky did not respond to requests for comment from Reuters.