While stocks may be off to another rough start for the week, they are doing better than crypto.
Bitcoin plummeted鈥攁gain鈥攖o hit its lowest mark since December 2020. As of early Monday morning, the cryptocurrency was down more than 10%鈥攑ricing it at around $23,500, well off its highs in November when it was flirting with $68,000.
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The drop comes amid more bad news in the crypto industry, as lending platform said over the weekend it is suspending withdrawals due to 鈥�.鈥�
According to SA国际传媒, Celsius has raised more than $860 million in funding.
Celsius鈥� announcement was followed Monday morning by crypto exchange giant saying it is temporarily pausing bitcoin withdrawals 鈥�.鈥�
Of course, this comes just weeks after the collapse of TerraUSD鈥攁lso called UST. The stablecoin was pegged on a 1-to-1 basis to cryptocurrency Luna. However, the financial engineering to maintain its 1-to-1 peg to its backup assets failed and coins became worthless.
It was just in April the Luna token hit a high market cap of around $41 billion.
This is all occurring at a very interesting time for the industry, as just last week to bring some federal oversight to the industry was introduced. While the bill proposed a range of provisions, its biggest takeaway was giving domestic regulatory power to the and not the . This basically classifies crypto as a commodity and not a security.
The freezing of transactions by large lending and exchange platforms in recent days is undoubtedly being watched closely by those who drafted that proposal announced last week.
Further reading:
- Crypto Bear Market Here A While
- Mergers & Money: The Instability Of Stablecoins
- Luna 2.0 Launches To Mixed Results
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