By THOUSIF INC
Bitcoin has lost almost a third of its value in the last week and is worth less than a third of the record high.
Celsius is a platform that allows people who hold cryptocurrency assets to lend out their tokens in return for high rates of fixed financial returns on their deposits.
It currently has around $8bn (£7bn) lent to its clients.
The platform said it would be “pausing all withdrawals, swap, and transfers between accounts” to be in “a better position to honour, over time, its withdrawal obligations”.
It said it was moving to “benefit our entire community to stabilise liquidity and operations while we take steps to preserve and protect assets”.
However, the decision heightened concerns about Celsius’s liquidity, and investors have fled the platform in recent weeks.
Celsius’s assets have been more than halved since October when it handled $26bn (£21bn) of client funds.
It comes after the collapse of Terra’s Luna token last month, which also had a significant knock-on effect on the crypto industry.
Freezing transactions has also accelerated an ongoing sell-off in cryptocurrencies.
The general mood around crypto has cooled this year.
Investors appear to be moving away from cryptocurrency and towards less risky investments in the face of global inflation.
Danial, founder of Invest Diva and author of Cryptocurrency Investing For Dummies, said: “What I expect from Bitcoin is volatility short-term and growth long-term.”
Big four accounting firm PWC published its fourth annual global crypto hedge fund report last week.
The results showed that “while the overall crypto market was quite bearish, managers remained extremely bullish on BTC”,
With 42% predicting Bitcoin to be between $75-100,000 (£62,000-£83,000) by the end of 2022.
A further 35% predicting a price over $50,000 (£41,000).