On Sunday evening, the Celsius Network, one of the largest crypto lending platforms, abruptly announced a “pause” for withdrawals and transfers, citing “extreme market conditions”. Celsius announced its shutdown when markets in Asia opened on Monday morning, and the price of its CEL token — valued at nearly $7 a year ago — lost a third of its remaining value, falling to just 21 cents.
In the hours since the break, the prices of other cryptocurrencies have also fallen. CoinMarketCaps global cryptocurrency tracker showed the total market cap of crypto assets (including stablecoins and tokens) below $1 trillion as of 8:53 AM ET, falling from its peak of $3 trillion last November.
Bitcoin’s price has fallen nearly 12 percent in the past 24 hours, about $2,000 off its price since the Celsius news came out, falling to $23,510.15 as of 9:33 a.m. ET, according to Coinbase. The last time Bitcoin’s price was this low was in December 2020, while it peaked at $69,000 on November 9, 2021. Today’s decline continues a slide that CoinDesk noted has been going on for 12 consecutive weeks, from $49,000 in March.
The same is true for Ethereum, which is down about 14 percent in the past day, falling from $1,355 before Celsius’s announcement to about $1,238 as of 9:33 a.m. ET. On November 9, last year, it also peaked, reaching $4,891.
This only affects the Bitcoin network. You can still withdraw Bitcoin on other networks like BEP-20.
This will probably take a little longer to fix than my initial estimate. More updates coming soon. Thank you for your patience and understanding
— CZ Binance (@cz_binance) June 13, 2022
Amid these falling crypto prices, major trading exchange Binance has also paused Bitcoin withdrawal. Binance CEO Changpeng Zhao announced the freeze at 8AM ET, saying it was “due to a transaction stall that caused a backlog”. Originally he said the break would be resolved in about 30 minutes but followed that up later by saying:“It will probably take a little longer to resolve than I initially estimated.”
The price for shares of crypto trading platform Coinbase, which had already announced a hiring freeze and withdrawn accepted job openings, fell 20 percent before markets opened on Monday morning. according to CNBC† Share prices have fallen 76 percent in the past year.
Another area to keep an eye on is Bitcoin mining where: CoinTelegraph reports, based on data from Bitdeer and others, that older mining rigs are at risk of being discontinued at current prices and mining difficulties. That’s where they would no longer be profitable to operate – with profits being negated by the cost of the electricity needed to power the platforms. According to the report, newer-generation hardware may continue to make a profit even if prices continue to fall, but a unit like Antminer’s S17+ (73T) rig could become unprofitable if the price drops below $22,000.