{"id":50336,"date":"2022-06-14T15:20:59","date_gmt":"2022-06-14T15:20:59","guid":{"rendered":"https:\/\/harchi90.com\/celsius-liquidity-crisis-fuels-fears-of-crypto-market-contagion\/"},"modified":"2022-06-14T15:20:59","modified_gmt":"2022-06-14T15:20:59","slug":"celsius-liquidity-crisis-fuels-fears-of-crypto-market-contagion","status":"publish","type":"post","link":"https:\/\/harchi90.com\/celsius-liquidity-crisis-fuels-fears-of-crypto-market-contagion\/","title":{"rendered":"Celsius liquidity crisis fuels fears of crypto market contagion"},"content":{"rendered":"
Cryptocurrencies have taken a tumble in 2022.<\/p>\n
Chesnot | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
A liquidity crisis at cryptocurrency lending firm Celsius has investors worried about a broader contagion that could bring down other major players in the market.<\/p>\n
Celsius recently moved to pause all account withdrawals, sparking fears that it may be about to go bust. The company lends out clients’ funds similar to a bank – but without the strict insurance requirements imposed on traditional lenders.<\/p>\n
Bitcoin sank below $ 21,000 on Tuesday, extending sharp declines from the previous day and sinking deeper into 18-month lows. The total value of all digital tokens combined also dipped below $ 1 trillion for the first time since early 2021, according to CoinMarketCap data.<\/p>\n
Crypto investors fear the possible collapse of Celsius may lead to even more pain for a market that was already on shaky ground after the demise of $ 60 billion stablecoin venture Terra. Celsius was an investor in Terra, but says it had “minimal” exposure to the project.<\/p>\n
Celsius did not return multiple CNBC requests for comment.<\/p>\n
“In the medium term, everyone is really bracing for more downside,” said Mikkel Morch, executive director of crypto hedge fund ARK36.<\/p>\n<\/div>\n