Bitcoin Corralito: They begin to limit withdrawals due to the fall of cryptocurrencies

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Bitcoin Corralito: They begin to limit withdrawals due to the fall of cryptocurrencies

The fall of bitcoin alerts the markets (Photo REUTERS / Dado Ruvic)

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The collapse of bitcoin, which fell nearly 13% on Monday and broke the $ 23,000 mark, is causing panic among cryptocurrency investors and traders. This is why some of the fintech companies on the market have started to implement restrictions on withdrawals by savers, a kind of “bitcoin box” with which they try to avoid bleeding Customers.

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Celsius network, A major cryptocurrency lender announced Sunday that it will suspend all withdrawals, exchanges and transfers between accounts due to “extreme market conditions”.

“We are taking this necessary measure for the benefit of our entire community stabilize liquidity and operations as we take steps to preserve and protect assets, ”the company said in a statement posted on its official blog.

Binance, a leading exchange platform operating in Argentina, where it is also the main sponsor of the Professional Soccer League, announced on Monday that it pause all Bitcoin withdrawals.

“Binance has temporarily suspended withdrawals via the #Bitcoin network only. Withdrawals of all coins can be made on other networks without problems,” they explained via Twitter. As they explain, “it was due to a transaction stuck in the chain” and is expected to be resolved on Monday morning.

Celsius, on the other hand, did not provide details on when it would be revived service. It is a lending company that manages approximately $ 11.8 billion in assets. According to its website, it offers annual returns of up to 18% on cryptocurrency deposits, an offering that has amassed a portfolio of nearly 1.7 million users.

“There is a lot of work to be done as we consider various options, this process will take time and there may be delays,” they said on the blog.

cryptocurrency crash

The company has been badly hit by the last few weeks of the cryptocurrency market, where most of the assets have suffered. collapses between strong and brutal. Higher inflation in the United States and rising interest rates, which usually punish assets considered “higher risk”, were one of the factors in the fall.

Luna Terra, a cryptocurrency that tried to be considered a stablecoin, cryptocurrencies of greater stability, suffered a sharp decline a few weeks ago. It has dragged others, such as Ethereum. Bitcoin, the main reference on the subject, has also suffered the blow.

In the past 24 hours, bitcoin was down 6.3% to $ 25,756 at 00:10 on Monday, while ethereum lost 6.4% to $ 1,373, according to data from CoinDesk. Celsius’s announcement only brought even more fear, cutting the share price by bitcoin under 23 thousand dollars.

Global cryptocurrency market cap fell 6.7% the day before to $ 1.03 trillion, according to CoinMarketCap data cited by the Wall Street Journal.

The analyst Sergio Ávila assured the EFE agency that inflation in the United States “does the market is pricing in more aggressive hikes in interest rates central banks and pressures the US Federal Reserve (Fed) to raise its rates further.

“Interest rate hikes negatively affect technology, all sectors that have to do with growth and, of course, cryptocurrencies, which are similarly conditioned,” stresses Ávila.

Since the Fed’s latest interest rate hike announced on May 4, bitcoin lost 40.64% of its value. At its all-time high, which was just a few months ago in November 2021, the cryptocurrency was trading at $ 64,000 per unit.

Source: Clarin

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