Latest Crypto News: Cryptocurrency Market Cap falls below $1 Trillion, Celsius Halts Crypto Withdrawals, Binance Pauses Bitcoin Withdrawals for Several Hours

Source: www.coindesk.com

Cryptocurrencies are now swimming in a red sea as the bearish market move continues.

On Monday 13, the global cryptocurrency market cap fell below $1 trillion. The last time the crypto market cap fell below this level was in January 2021. At the time of writing on Tuesday 14, the crypto market cap stood at about $954.57 billion, having recorded a 3.12% drop in the last day. This is according to data obtained from cryptocurrency exchange platforms Coinbase, Binance, and CoinMarketCap.

Source: CoinMarketCap

Bitcoin value has dropped below the $23,000 mark, a more than 65% drop from its all-time high of about $69,000 attained in November 2021. Bitcoin, the leading cryptocurrency in terms of market cap, has dropped for nearly 12 straight weeks, a significant downturn in the history of the cryptocurrency. At the time of writing, the Bitcoin price was about $21,902 on Coinbase, Binance, and CoinMarketCap, having recorded a 7.11% drop in the last 1 day.

Source: CoinMarketCap

Ethereum, the second-largest cryptocurrency by market cap, has also dropped below the $1,300 mark. At the time of writing, the Ethereum price stood at about $1,190 on Coinbase, Binance, and CoinMarketCap. This means that the Ethereum price has dropped by more than 74% from its all-time high of $4,878.

Source: CoinMarketCap

The two cryptocurrencies, that is, Bitcoin and Ethereum, have never dropped to such levels since December 2020.

Altcoins seem to have increased in price on Tuesday 14. Solana’s price has increased by 8.17% in the past 24 hours and is currently trading at about $28.80 on exchanges like Coinbase, Binance, and CoinMarketCap. The price of Litecoin has increased by 4.43% and is currently trading at about $43.64. XRP price has increased by 1.14% in the past 1 day and is currently trading at about $0.3106.

Celsius Halts Withdrawals

The drop in Bitcoin and Ethereum prices comes after Celsius, one of the top cryptocurrency lending platforms, has paused all withdrawals, which has caused more pain in the cryptocurrency market.

In May, Celsius had $12 billion in assets under management and $8 billion lent out to clients. Celsius offers its users higher-than-average interest rates for their deposits, making it the cryptocurrency equivalent of a bank. However, Celsius doesn’t operate under strict insurance requirements like those of traditional lenders.

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

This move has left cryptocurrency investors and analysts concerned about Celsius’ solvency. The company has seen its assets more than halve since October after it handled $26 billion in client funds. Its token, cel, has also lost about 97% of its value within the same timeframe. The company encourages cryptocurrency enthusiasts to buy the cel token to earn interest on lending rates and earn rewards.

Last week, the company had made it clear that it had no issues in meeting withdrawal requests from users, arguing that it had the reserves and “more than enough” Ethereum to meet obligations.

Hours before the freeze was announced, Celsius boss, Alex Mashinsky, lashed out at a cryptocurrency investor, who had raised concerns with Celsius.

Source: Twitter.com

Binance Pauses Bitcoin Withdrawals for Several Hours

On Monday morning, Binance, the largest cryptocurrency exchange, paused Bitcoin withdrawals as a result of a “stuck transaction causing a backlog.”

A tweet from Binance CEO, Changpeng Zhao, revealed that the issue was experienced at 8:00 a.m ET, at which he promised that the issue will be resolved within 30 minutes.

Source: Twitter.com

However, he later said that it will take “a bit longer to fix than [his] initial estimate.”

Binance announced in a tweet that Binance withdrawals had resumed at 11:12 a.m.

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