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Bitcoin Plunges to Lowest Levels Since December 2020 as Crypto Lender Celsius “Pauses” Withdrawals | business news

Bitcoin is down more than 10%, falling below $25,000 for the first time since December 2020.

Celsius Network, a major US cryptocurrency lending company, froze withdrawals and transfers citing “extreme” conditions.

The move led to a burglary cryptocurrencieswhich fell below $1 trillion for the first time since January last year.

Bitcoin slipped to $23,476 (£19,300) following Monday’s announcement.

Ether, the second largest token after bitcoin, fell as much as 16% to $1,177 (£967), its lowest since January 2021.

Binance, one of the world’s largest cryptocurrency exchanges, paused bitcoin withdrawals, with chief executive Changpeng Zhao blaming a “stuck transaction” that caused a backlog.

He said the funds are secure.

Susannah Streeter, Senior Investment and Markets Analyst at Hargreaves Lansdown, said: “With inflation proving to be an even tougher opponent to beat than expected, Bitcoin and Ether continue to bruise badly in the ring.

“They are the main victims of the flight from risky assets as investors fret over soaring consumer prices
World.”

It was announced on Friday that US inflation hit a new 40-year high of 8.6% in May amid rising energy and food costs.

The figure was higher than expected and dashed hopes that inflation had peaked.

Rising prices in the US sparked fears that the US Federal Reserve will hike rates further.

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Speculation is mounting that interest rates could rise by three-quarters of a percentage point later this week for the first time since 1994.

Higher interest rates can deter investors because they make borrowing more expensive.

U.S. stocks opened sharply lower Monday, with the S&P 500 nearing a 20% drop from its peak earlier in the year.

The S&P 500 was down 2.7% in the first trade, while the Dow Jones Industrial Average was down 855 points, or 2.7%, as of 11:15 a.m. Eastern time (4:15 p.m. UK). The Nasdaq Composite was down 3.2%.

The FTSE 100 fell 1.7% and in Europe the German DAX lost 2.7%. The French CAC 40 fell 2.7%.

In Asia, indices in Seoul, Tokyo and Hong Kong fell at least 3%, fueled by concerns rising COVID-19 cases and tighter restrictions in China.

Bitcoin Plunges to Lowest Levels Since December 2020 as Crypto Lender Celsius “Pauses” Withdrawals | business news

Source link Bitcoin Plunges to Lowest Levels Since December 2020 as Crypto Lender Celsius “Pauses” Withdrawals | business news

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