Bitcoin fell to its lowest level since December 2020 after one of the crypto’s largest creditors, the Celsius Network, suspended withdrawals on Sunday.
Blaming “extreme market conditions”, Celsius suspended all withdrawals, swaps, and transfers between accounts.
“We are taking these necessary actions in the interest of our entire community to stabilize liquidity and operations while we take steps to preserve and protect assets,” the company wrote in a notice for users. ” We have a lot of work to do on the various options, this process will take time, and there may be delays”.
Celsius, which was valued at $3.25 billion as a result of a $750 million Series B funding round in November, allows its 1.7 million users to place their bitcoins, ethereum and tether and receive weekly interest payments.
Following this, Bitcoin fell by another 12% and traded just above $24,000.
The announcement was made against the backdrop of the continued decline in the value of many cryptocurrencies following the collapse of Terraform Labs Luna and its related UST token last month.
