RIYADH: Bitcoin, the leading cryptocurrency internationally, traded lower on Monday, falling 5.60% to $25,767.27 as of 8:30 a.m. Riyadh time.
Ethereum, the second most traded cryptocurrency, was priced at $1,356.23, falling 5.45%, according to data from Coindesk.
Crypto Firm Celsius Halts All Transfers As Market Crashes
In another indication of the pressure on the crypto industry, cryptocurrency lending company Celsius Network said on Monday that it would halt withdrawals and transfers between accounts due to “extreme market conditions”, it said. reported Reuters.
After Celsius’ announcement, Bitcoin fell more than 6% to a low of $24,888, an 18-month low. Ethereum, the world’s second largest cryptocurrency, plunged to $1,303, its lowest level since March 2021.
“We are taking this necessary step…to stabilize liquidity and operations while taking steps to preserve and protect assets,” the company said in a statement.
The past few months have seen crypto markets come under pressure, as interest rates have risen around the world, driving crypto assets down.
As a result of and partly due to the collapse of some crypto projects, there have also been price drops. Last month, stablecoin TerraUSD crashed after breaking its peg to the dollar.
Decentralized finance market rocked by Luna crash
As the SR150 billion ($40 billion) collapse of cryptocurrency Luna sends shockwaves through a key segment of the digital asset market, traders are moving away from decentralized finance-related investments , reported the Financial Times.
With so-called “DeFi”, projects can operate without centralized intermediaries such as banks using automated systems that distribute control to key stakeholders. It is considered by many crypto enthusiasts to be one of the most promising developments in the digital asset industry.
However, the failure of Luna last month and its related terraUSD stablecoin underscores the risks of investing in DeFi projects and the potential for catastrophic errors in their design, the FT said.
DeFi markets depend on stablecoins for transactions, and the demise of Terra has particularly affected confidence in the sector, he added.