The price of bitcoin just experienced its biggest crash since 2020, tumbling to less than $24,000 per asset.
The week started badly for cryptocurrencies. In free fall since last March, bitcoin has just passed below the symbolic bar of 21,000 dollars. A record level, which had not been reached since December 2020. The only difference: at the time, the non-fiat currency was still in its infancy, and the $20,000 threshold sounded like a clear progression.
Almost a year after a first collapse that occurred last July, BTC is experiencing a new crypto-krach, and brings with it many other currencies. Starting with Ether, which has experienced an even steeper fall, and is now approaching $1,000. With an estimated 65% loss in value, bitcoin is now just at $20,000. We are a long way from the $64,000 recorded at its all-time high last November.
At this point, the question now is whether the asset can tumble further. Last month, a first market collapse had serious consequences on the virtual portfolio of its investors and individuals. It must be said that in addition to being historic, the crash does not spare stablecoinsyet considered less versatile because it is indexed to fiduciary currencies such as the euro and the dollar.
Celsius takes a break
.@CelsiusNetwork is pausing all withdrawals, Swap, and transfers between accounts. Acting in the interest of our community is our top priority. Our operations continue and we will continue to share information with the community. More here: https://t.co/CvjORUICs2
— Celsius (@CelsiusNetwork) June 13, 2022
Faced with the slippery slope that the crypto market is taking, the Celsius platform has announced its decision to block all withdrawals and transactions, for an indefinite period. Since June 12, the threat of a new collapse has worried us, especially since it is reminiscent of that of the Terra ecosystem, the value of which collapsed in just a few hours at the beginning of the month of may. While the company initially promised its customers to borrow at favorable rates and receive rebates, while it reserved the right to reuse the deposited assets to guarantee its own loans.
Specializing in staking and rehypothecation, the firm has until now ensured an immediate withdrawal of deposited funds, within a maximum of three days. With the Celsius freeze, the exact opposite is happening. If for the moment it is still too early to talk about bankruptcy, the platform stands out as a new clue as to the latent collapse of cryptocurrencies.