Celsius freezes withdrawals and transfers, proving correct the harped-on blockchain adage “not your keys, not your crypto.” More stablecoin destabilization as USDD and USDN lose their dollar peg. And days after Bitcoin gave us a breather from downtrending market conditions and closed its first weekly green candle after nine weeks of the red, US Bureau of Labor Statistics came out with the highest Consumer Price Index since 1981, markets melted down again. My name is Ben. This is your nightly crypto news wrap-up.
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Let’s get it! Celsius, the popular crypto lending platform, froze withdrawals and paused swaps and transfers, giving no details on when these services will resume. This comes after a day of extreme market volatility, with the price of Bitcoin tumbling 15% early this morning. Celsius already banned new transfers from unaccredited investors in April, only allowing accredited investors and those that have coins already on the platform to earn rewards. Celsius released a statement on its blog overnight saying, “Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, swaps and transfers between accounts,” adding, “We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations.” Over time. Yikes! Looks like the only gains coming from Celsius lending platform are the number of times Pablo Escobar waiting meme can be used in its subreddit. Rival lending platform Nexo published a letter to Celsius in an overnight tweet that expressed interest in buying Celsius’ assets. Although no price was mentioned, Nexo said it was most interested in purchasing its collateralized loan portfolio.
Let’s jump in and do a little market watch as the markets have been absolutely brutal today. Bitcoin coming in at $22,498 Down 15% on the day, 28% on the week Ethereum at $1,200 Down 16% on the day, 35% on the week Let’s go ahead and check our top losers. Nexo down 21% THORChain down 20% Zcash down almost 20% Curve DAO Token down almost 19% And we also have Klaytn down 18% And Maker down 18% as well Guys, blood is in the streets now. This didn’t come as a complete surprise.
We did have blood diamonds popping up on the higher hourly timeframes for ETH. These have been popping up all over the place. We also had a yellow X on the daily for the total market cap not that long ago. So it doesn’t come as a complete surprise, but it is very, very brutal nonetheless. So, guys, just stick through this. It’s the ones that go through the toughest times in crypto that come out on top. That is an absolute fact. So strap down and double down on your research. Get through this bear market so you can be on the top for the bear market.
With the market on eggshells after the UST disaster and questions about Tether’s backing, stablecoin concerns have been revived with another depegging, USDD and USDN. Tron’s Bitcoin-backed stablecoin USDD and Neutrino’s algorithmic stablecoin USDN both wobbled 1% off their dollar peg in the overnight hours. Investors are pulling funds from liquidity contracts, causing the Tron DAO and Waves dApp Neutrino to take steps in defending their peg. Tron’s Justin Sun will inject $2 billion, which he said in a tweet will stabilize USDD and create a short squeeze for all the Tron shorts on Binance. We’ll have to see it to believe it. And Neutrino is set to inject a portion of its collateral to stabilize USDN. Open any financial news site and find the reason for all this chaos. Bloodbath Slump Sinking ship Yep, the markets have crashed. Bitcoin dropped 17% and the S&P 500 fell 3.1%, putting the broad index at risk of falling into bear market territory, which is defined as 20% loss from a recent high.
Dow Jones took a hit as well, with a 2.1% decline of nearly 700 points. The Fed’s so-called “soft landing” is becoming increasingly turbulent as Friday’s Consumer Price Index, or CPI, overshot expectations, indicating a rise in inflation of 8.6% year-over-year in May. It’s the fastest rise since 1981. Investors clearly rattled by the numbers pulled out of stock and crypto investments. You guys have heard of hot girls summer. Well, according to market analyst Susannah Streeter, you might be in for hot price summer, with investors worrying that inflation is getting too hot to handle and the Fed likely to respond accordingly. Central Bank begins a two-day meeting on Tuesday. Many speculate that the next rate hike announcement will happen Wednesday. As investors hit sell at breakneck speeds, crypto lending platforms and crypto-backed stablecoins are first to show symptoms of market mayhem, similarly to how a frog’s permeable skin makes it the first indicator of habitat health. Lending platforms and algorithmic stablecoins backed by crypto are so influenced by the health of the market, and when the tough gets going, it makes sense they would be the first to fall.
This article is a transcription of a video made by BitBoy Crypto
Original video: https://youtu.be/sgx4UGNBumY
