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The price of bitcoin has fallen 25% in the last month, dragging other major cryptocurrencies, including ethereum, BNB
Traders are now anxiously watching the price of cryptocurrency cryptocurrency Celsius, which has fallen nearly 70 percent in the past month as panicked sellers unload the currency, forcing Celsius chief executive Alex Mashinsky to reassure market.
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“All funds are safe,” Mashinsky said sent to Twitter in response to rumors that Celsisus, which allows investors to earn interest on their cryptocurrencies, as well as use it as collateral for loans, was in trouble. “Despite the extreme volatility of the market, Celsius has not experienced significant losses and all funds are safe.”
Celsius revealed in his weekly transparency report that recorded $ 1.1 billion in outflows between May 6 and 12, described by Mashinsky in his video on Friday as a “tough week” in which Celsius “took quite a beating.” But, “anyone who wanted to withdraw funds could do so,” Mashinsky told viewers.
Earlier, Mashinsky defended the cell in a YouTube interview with InvestAnswers. “[Cel’’s] not connected [to the business], we don’t protect the cel token, it has its own life, “Mashinsky said.” If too many people show up to sell and not enough people show up to buy, the cel will go down in price. In the last downturn, cel behaved almost like a stable currency despite the recession, but that just meant there weren’t enough buyers for sellers. “
Last year, when bitcoin and the wider crypto market collapsed after China’s expulsion of miners and crypto traders, the price of cel remained stable.
Explaining cel’s “unique self-correction mechanism,” Mashinsky described how Celsius supports cryptocurrency by buying more of it each week to meet demand.
“Our steering wheel is more users who bring more assets, which means more performance, which means we have to buy more cel. So when we earn that performance in bitcoins, ethereum, etc. and those people chose to earn and sell, [Celsius] you need to buy more cell chips “.
This week, blockchain analysis by The Block revealed that Celsius had invested $ 500 million in the high-performance ground anchoring protocol in recent months, managing to withdraw it before the complete collapse of the moon, UST and the earth ecosystem.
Meanwhile, the Financial Times Celsius reported that it had reduced its stablecoin USDT tether lending before the latest market volatility, halving it to 500 million in recent months, citing an anonymous source.
Tether’s current supply fell to about $ 75 billion, down from $ 83 billion earlier this week, according to CoinMarketCap data, suggesting the company suffered about $ 8 billion in ransoms over the week.
The recent volatility in bitcoin and cryptocurrency prices has blamed the Federal Reserve for embarking on a tough program of rising interest rates in an attempt to reduce rampant inflation, with market analysts hoping more pain will come for both stocks and cryptocurrencies.
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“The crypto market is a small market,” Mashinsky said, speaking on the YouTube channel InvestAnswers. “It’s basically tied to the chair to the stock market … and to the stock market is tied to the chair to the Fed and whatever the Fed does, the stock market will react positively or negatively.”
Mashinsky warned that rising inflation, which has been driving the Fed in recent months, along with the Cboe Volatility Index, or VIX, are the “first dominoes”, signaling market fluctuations.
“I have no idea if [bitcoin] the price will go up or down, ”Cory Klippsten, executive director of bitcoin swan buying app Swan Bitcoin, said in a Telegram message.
“Bitcoin seems cheap to me at these levels, but it always seems cheap to me. Overall, high volatility is great for trading volumes, including Swan. We’ve seen high buy levels, three or four times higher than usual, since Luna
Mashinsky and Celsius did not return a request for comment when contacted.