The value of Bitcoin took a staggering dive overnight, falling from an average of RM131000 to below the RM100000 line and now hovering at the RM97000 average, at the time of this publication. The coin’s drop in value is the greatest in 18 months, experts say.
According to reports, one major reason behind the massive dip in Bitcoin’s value is due to Celsius Network, a US-based cryptocurrency lender, freezing all withdrawals and transfers. The crypto exchange cited “extreme” conditions as an excuse behind its actions, and in response to the global downturn of the cryptocurrency globally.
.@CelsiusNetwork is pausing all withdrawals, Swap, and transfers between accounts. Acting in the interest of our community is our top priority. Our operations continue and we will continue to share information with the community. More here: https://t.co/CvjORUICs2
— Celsius (@CelsiusNetwork) June 13, 2022
Through Celsius’ actions, the slide in Bitcoin’s value effectively wiped around US$200 billion (~RM884 billion) off the crypto market, causing the market value for the medium to slip below the US$1 trillion (~RM4.42 trillion) mark.
Of course, another couple of reasons behind the decline in Bitcoin’s value, and a more obvious one at that, are rising interest rates and surging inflation globally, which have been prompting investors to forego “riskier” assets across the board and to consider safer investment options.
The second reason as to why investors have been trying to keep their assets close to the shoreline is also due to another major event: the collapse of the two altcoins, Luna and Tether, the last one widely considered as one the world’s largest stablecoin.
Bitcoin experienced a second resurgence a couple of years ago, with its value peaking at RM280000 back in November 2021, the highest the coin has ever been valued at. Ethereum, the second most valued cryptocurrency after Bitcoin, had a value of nearly RM20000 at its peak. It now sits at an average value of RM5000.
Celsius isn’t the only crypto-based company that has taken drastic measures to protect both its assets and customers. BlockFi, another crypto lending platform, announced at the start of the week that it would be laying approximately 20% of its staff.