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Bitcoin price has collapsed 25% over the past month, sending other major cryptocurrencies down including Ethereum and BNB.
Now, traders are anxiously watching the price of cryptocurrency lender Celsius cryptocurrency, which has collapsed nearly 70% over the past month as panicked sellers dump the coin – forcing Celsius CEO Alex Mashinsky to reassure the market.
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“All the money is safe,” Mashinsky Spread On Twitter in response to rumors that Celsisus, which allows investors to earn interest on their crypto holdings as well as use them as collateral for loans, has been in trouble. “Despite the extreme market volatility, Celsius has not experienced any major losses and all funds are safe.”
Celsius open In its weekly Transparency Report, which recorded $1.1 billion in outflows between May 6 and May 12, Mashinsky described it in his Friday photo report as a “difficult week” in which the “percentage degree took a big hit.” But Mashinsky told viewers that “anyone who wanted to withdraw money was able to do it.”
Earlier, Mashinsky defended cel in a YouTube interview with InvestAnswers. “[Cel’’s] not connected [to the business]“We don’t protect the descendant’s token,” Mashinsky said, “he has his own life.” If too many people appear to sell and not enough people appear to buy, the sale price will fall. In the recent pullback, cel has almost behaved as a stable currency despite the downturn, but that just means there aren’t enough buyers for sellers.”
In the past year, with the collapse of the broader bitcoin and cryptocurrency market after China expelled miners and traders, the torrent price has remained stable.
Explaining the “unique self-correcting mechanism” of cel, Mashinsky explained how Celsius supports the cryptocurrency by buying more of it each week to meet demand.
“Our flywheel is more users bringing in more assets, which means more revenue, which means we have to buy more cell. So when we earn that revenue on bitcoin, ethereum, etc., and these people choose to earn and sell, [Celsius] You should buy more cel tokens”.
This week, blockchain analysis by Bloc Celsius revealed that it had invested $500 million in Terra’s high-throughput Anchor protocol in recent months, and was able to pull it off before the complete collapse of Luna, UST and the terra ecosystem.
Meanwhile, the financial times Celsius said it cut its borrowings from the USDT stablecoin ahead of recent market volatility, halving it to $500 million in recent months, citing an anonymous source.
Tether’s circulating supply has fallen to around $75 billion, down from $83 billion earlier this week according to CoinMarketCap data, indicating that the company was hit by about $8 billion in redemptions over the course of the week.
The recent volatility of bitcoin and cryptocurrency prices has been blamed on the Federal Reserve’s aggressive rate hike program in an effort to bring down runaway inflation – with market analysts expecting more pain for both stocks and cryptocurrencies.
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“The cryptocurrency market is a small market,” Mashinsky said, speaking on InvestAnswers YouTube channel. “It’s basically tied to the stock market…the stock market is tied to the Fed and whatever the Fed does, the stock market is going to react in a positive or negative way.”
Mashinsky warned that high inflation, which has been driving the Fed in recent months, along with the Cboe Volatility Index, or VIX, are the “first dominos,” indicating market volatility.
“I have no idea if [bitcoin] The price will go up or down, Cory Klepsten, CEO of bitcoin buying app Swan Bitcoin, said in a Telegram message.
“Bitcoin looks cheap to me at these levels, but it is always cheap to me. Overall, high volatility is great for exchange volumes, including Swan. We have seen high buying levels, three to four times higher than usual, since Luna
Mashinsky and Celsius did not respond to a request for comment when contacted.