After announcements of increasing interest rates, cryptocurrencies keep losing value. To stabilize the market, platforms halt transactions, causing a faster meltdown of the entire financial market.
Binance and the Celsius Network both took radical actions to protect their platforms. With its 1.7 million clients, the Celsius network announced a halt on all swaps, transfers, and withdrawals to stabilize liquidity and protect its assets.
While Binance was stopped for a few hours, there’s no prediction on when the Celsius Network will resume its functions. Information released by the company mentions only that it will ‘take time’ before they allow their clients to withdraw deposits.
Amidst the crisis, even the major currencies keep spiraling out of control. For example, Ether sometimes drops up to 4% in a day, which adds up to losing around 75% since November last year.
Even Bitcoin, a coin that reached $69,000 in November 2021, dropped to below $23,000 after going through an 8% drop on Tuesday. As the crisis is projected to continue, experts claim that Bitcoin dropping to under $20,000 will be a serious psychological blow to all investors and traders.
Stablecoins aren’t safe either. Tether, TerraUSD, and other popular stablecoins are collapsing one after the other.
As the market keeps experiencing difficulties, there are indications that the US Treasury might get involved. The Treasury Secretary announced that it might make moves to protect investors as the risks tied to crypto trading keep growing.