Monat: Juni 2022

Veröffentlicht am

Analyst: Cryptocurrency crash not solely due to Celsius Network pausing withdrawals

The cryptocurrency market has lost more than $200 billion over the past few days, and many attribute the crash to Celsius’s withdrawal changes.

<Body>

The cryptocurrency market experienced another crash over the weekend. The total cryptocurrency market cap dropped from the $1.2 trillion level it stood at a few days ago to currently stand at $945 billion.

Bitcoin, the world’s leading cryptocurrency, has lost more than 17% of its value over the past 24 hours and currently trades around $23k per coin. 

Some market experts attribute the latest crash to Celsius Network pausing its withdrawals. 

Celsius Network is one of the biggest lenders in the cryptocurrency space. The company controls more than $12 billion in assets under management.

The company told its users that;

“Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, swaps, and transfers between accounts. “Acting in the interest of our community is our top priority. In service of that commitment and to adhere to our risk management framework, we have activated a clause in our Terms of Use that will allow for this process to take place. Celsius has valuable assets, and we are working diligently to meet our obligations.”

However, Marcus Sotiriou, Analyst at the UK-based digital asset broker GlobalBlock told Coinjournal that the market crash was not solely due to the Celsius Network pausing withdrawals. He said;

“Despite the fear, uncertainty, and doubt the Celsius debacle has caused, the sell-off started at the beginning of the weekend on Friday, after the U.S. inflation data was released. CPI was reportedly 8.6% year over year in May, which is a 0.3% increase compared to April, showing that inflation is ramping up rather than slowing down. I think this is a bigger contributor to the decline we have seen, as it results in a more hawkish Federal Reserve – they are now forced to remove more liquidity from the market in order to bring down inflation. When liquidity is removed, risk-on assets are hit the hardest, which includes crypto.”

Despite the ongoing bearish sentiment, Sotiriou said investors should remember that this period of persistent inflation should pass, and the crypto industry will become more efficient as unsecure and incompetent firms are weeded out bit by bit.

The post Analyst: Cryptocurrency crash not solely due to Celsius Network pausing withdrawals appeared first on CoinJournal.

Veröffentlicht am

Bitcoin news: Binance temporarily halts BTC withdrawals

According to a tweet posted by Binance CEO, Changpeng Zhao, the crypto exchange has temporarily suspended Bitcoin (BTC) withdrawal as a result of the current market turmoil.

However, the CEO has assured their customers that their funds are safe noting that the withdrawal suspension is connected to a backlog triggered by a stuck on-chain transaction. 

In an official announcement, it was confirmed that the Binance team is currently working on the problem. Zhao noted the team will have fixed the issue within thirty minutes. 

Major crypto exchanges were affected too

When there is severe market volatility, major crypto exchanges also experience performance issues. At the time of writing, the largest crypto by market cap, Bitcoin, the price has dropped to as low as $23,591.83 down 13.67% in the last 24 hours extending its bearish streak.

Since January 2021, this is the first time the total crypto market cap has dropped below the $1 billion level. According to the data from CoinGlas, a crypto analyst firm, there is about $316 million worth of cryptos in liquidation.

Additionally, the crypto market has also been hit by the Celsius mess and the deteriorating macro conditions. Earlier today, one of the largest crypto lenders, Celsius, had paused all the withdrawal transactions. Following the Celsius announcement, its native token (CEL) lost half of its value causing fears among the crypto enthusiasts and investors.

However, Binance recorded over $28.7 billion worth of traders in the last 24 hours overshadowing its closest competitors, Coinbase and FTX.

The post Bitcoin news: Binance temporarily halts BTC withdrawals appeared first on CoinJournal.

Veröffentlicht am

Tron DAO Reserve deploys more assets as USDD depegs and TRX falls 18%

The general crypto Monday has started the week with a plunge, but for TRON, things have somehow started to get worse after the Tron DAO Reserve was forced to deploy resources after its stablecoin de-pegged.

The USDD stablecoin started the week by temporarily depeging to as low as $0.97; something that caused a corresponding reaction affecting TRX price which had dropped by 18.68% to $0.06291 at the time of writing.

At the time of writing, the price of the USDD stablecoin had not yet regained its Dollar parity and was trading at $0.9892.

Justin Sun is ready to fight for the stability of USDD

The head of Tron Foundation, Justin Sun, has stated that he is ready to deploy as much as $2 billion to keep the USDD pegged to the dollar.

So far, the TRON DAO has deployed 700 million USDC coins to try and keep the USDD pegged to the dollar.

The current situation with the USDD stablecoin seems to be following a similar trajectory to Terra’s TerraUSD (UST) stablecoin.

When the UST first de-pegged, Do Kown announced that they would be deploying more capital to try and keep the UST pegged to the US Dollar. 

Avoiding Terra’s path

Justin Sun had earlier on said that the USDD would be overcollateralized at 130% to avoid going down the same path that the TerraUSD used.

Sun has gone ahead to also say that TRON DAO will deploy $2 billion to fight back the negative funding on Binance. He also warned of an impending short squeeze on TRX tokens over the next few days or weeks.

The post Tron DAO Reserve deploys more assets as USDD depegs and TRX falls 18% appeared first on CoinJournal.