Extra-rough Monday… Bitcoin dropped below $24K for the first time since 2020 yesterday, sending ripples through the industry. Celsius, one of the biggest crypto lenders, halted transactions for its nearly 2M customers, citing “extreme market conditions.” Celsius manages ~$12B in assets, and it’s TBD when (and if) customers will get their $$ back.
Moving like the market… Some thought crypto could be a hedge against inflation and stock-market moves. That hasn’t panned out so far this year. While stocks tumbled, the crypto market lost $200B in value over the past week — and $2T+ in the past eight months. Celsius isn’t the only crypto company feeling the heat:
Crypto’s getting a reality check… It’s not just prices: from Stablegains to the Anchor Protocol, promises of big returns have lured investors to the high-flying world of crypto lending. But some of those investments have crashed and burned. Celsius’ freeze puts the spotlight on lawmakers and regulators, who could face more pressure to step in. Meanwhile, a bipartisan bill to regulate digital assets is already in the works.