Liquidity Concerns Rise As Overall Marketcap Drops Under $1 Trillion and Paused Withdrawals

Trading/Market Analysis
Written By Francisko Kim

Overview

  • The Overall Crypto marketcap has dropped to levels that we haven’t seen in over a year ($970 billion at the time of writing)

  • Celsius and Binance announced that they had to pause certain withdrawals, raising liquidity concerns across the lending and trading platforms

    • Following Celsius’s announcement, BTC and ETH dropped to 18 month lows

Celsius Network is a cryptocurrency lending platform and announced on their blog that “due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts.” They also assured users that they would continue to accrue rewards throughout the pause.

Gemini, the largest global crypto exchange announced around 8 AM EST today that they were temporarily pausing bitcoin withdrawals “due to a stuck transaction causing a backlog.” The announcement came through a tweet from Binance founder/CEO Changpeng Zhao. While the tweet said that it should be fixed within a half hour, around 9 AM Zhang announced that it would take a bit longer and that only the Bitcoin network is being impacted. As of 11 AM, no further announcement has been made.

Francisko Kim
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