Beautiful Virgin Islands

Tuesday, Jun 24, 2025

0:00
0:00

Bitcoin plummets to lowest level since December 2020 as crypto lender Celsius 'pauses' withdrawals

Friday's news that US inflation hit 8.6% in May has prompted some investors to ditch riskier assets like cryptocurrencies.

Bitcoin has plummeted by more than 10%, dropping below $25,000 for the first time since December 2020.

Celsius Network, a major US cryptocurrency lending company, froze withdrawals and transfers, citing "extreme" conditions.

The move fuelled a slump across cryptocurrencies, with their value falling below $1trn for the first time since January last year.

Bitcoin slid to $23,476 (£19,300) after the announcement on Monday.

Ether, the second largest token after bitcoin, tumbled by as much as 16% to $1,177 (£967), its lowest since January 2021.

Binance, one of the world's largest cryptocurrency exchanges, paused bitcoin withdrawals, with chief executive Changpeng Zhao blaming a "stuck transaction" that was causing a backlog.

He said funds were safe.


Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "As inflation proves to be an even trickier opponent to beat than expected, Bitcoin and Ether are continuing to get a severe bruising in the ring.

"They are prime victims of the flight away from risky assets as investors fret about spiralling consumer prices around the
world."

On Friday, it was announced that US inflation hit a new 40-year high of 8.6% in May amid rising energy and food costs.

The figure was higher than expected, crushing hopes that inflation had peaked.

Soaring prices in the US triggered fears that the Federal Reserve, the US central bank, will further hike interest rates.

Speculation is growing that rates could rise by three-quarters of a percentage point later this week for the first time since 1994.

Higher interest rates can be off-putting for investors because they make borrowing more expensive.

US stocks opened sharply lower on Monday, with the S&P 500 edging closer to a 20% decline from its peak earlier this year.

The S&P 500 was down 2.7% in the first trading, while the Dow Jones Industrial Average fell 855 points, or 2.7% as of 11.15am eastern time (4.15pm UK time). The Nasdaq composite was 3.2% lower.

The FTSE 100 dropped 1.7% and in Europe, Germany's DAX lost 2.7%. The French CAC 40 fell 2.7%.

In Asia, indexes fell at least 3% in Seoul, Tokyo and Hong Kong, inflamed by concerns about rising COVID-19 cases and tougher restrictions in China.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
×