Cryptocurrencies collapse and bitcoin falls to its lowest level since December 2020 - La Tercera

It’s not a good day for cryptocurrencies. Of course because the market suffered a very hard fall at the beginning of the week after the platform Celsius Network announced that it has decided to stop withdrawals, exchanges and transfers on its network.

Bitcoin, the most valuable digital token on the market, plummets 13.9% in $23,600its lowest level since December 2020, while its market capitalization was reduced to $451 billion.

the token CELowned by Celsius, has plunged as much as 62.5% and virtual currency Ether is down more than 14% right now.

Celsius Network said its goal is to protect its users’ assets and the decision was made due to “extreme conditions” in the cryptocurrency market.

“We are taking this step today to put Celsius in a better position to meet its pension obligations over time,” the company said, as quoted by CincoDías.

“Our ultimate goal is to stabilize liquidity and restore withdrawals and transfers between accounts as quickly as possible. There is a lot of work to do as we look at various options, this process will take time and there could be delays.”

Ethereum and altcoins lead to cryptocurrency crash
Cryptocurrencies

According to Bloomberg, doubts about the high yields that underpin products like those offered by Celsius have intensified after the collapse of the Terra ecosystem in May, and as tighter monetary policy around the world dampens demand for higher risk assets.

The CEL token promises “real financial rewards,” including an additional weekly return of up to 30%, according to its website.

Celsius competitors Aave, Maple and Compound also fell 12%, 15% and 13%, respectively. Separately, Nexo, a London-based competitor, announced on Twitter that it was ready to buy all of Celsius’ “remaining eligible assets”, “primarily its secured loan portfolio”. Nexo is preparing to launch an offer to Celsius and “will communicate it publicly”, according to the recent tweet.

Cryptocurrency markets have crashed in recent weeks, Reuters said, as rising interest rates and soaring inflation hurt the riskiest assets in financial markets. The May crash of terraUSD and luna tokens also shook the industry.

“It’s still an uncomfortable time, and there’s some risk of contagion around crypto in general,” said Joseph Edwards of fund management firm Solrise Finance.

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