Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Bitcoin Falls Amid Further Signs of Crypto Industry Turmoil

Published 07/05/2022, 08:38 AM
Updated 07/05/2022, 08:49 AM
© Reuters

© Reuters

By Scott Kanowsky 

Investing.com -- Bitcoin fell on Tuesday, in the wake of a move by Estonia-based cryptocurrency exchange CoinLoan to limit withdrawals, as the impact of the collapse in digital assets spreads.

In a blog post on Monday, CoinLoan aimed to reassure customers that it had no exposure to a string of recent collapses in the crypto industry, including the failure of hedge fund Three Arrows Capital and a slump in the value of stablecoin terraUSD.

But the company said the turmoil has still caused an increase in withdrawals from its platform, leading it to reduce the amount users can take out of their accounts. CoinLoan called it a "pre-emptive step" designed to ensure the firm can continue to operate in the future.

"Please rest assured that your assets are safe," CoinLoan said. "We understand how to handle difficulties, and we are also well-equipped to prevent them."

Users on the platform can now withdraw a total daily maximum of $5,000 from their accounts. CoinLoan added that the decision is temporary, and the limit will be removed once "the market situation allows it."

CoinLoan's decision follows a move earlier this week from Singaporean crypto lending platform Vauld to halt withdrawals, deposits and trading. Vauld said the decision was based on a number of factors, including "volatile" market conditions, which subsequently led customers to pull out more than $197.7M from the platform since June 12.

The announcements from CoinLoan and Vauld come amid a sharp fall in the price of Bitcoin. The digital token has tumbled by more than 70% from its record high, as investors edge away from safe-haven assets due to concerns about a possible slowdown in global growth. This fall has helped drag other cryptocurrencies lower.

As of 08:36 EST (1236 GMT) on Tuesday, Bitcoin was trading down 1.72% at $19,364.00.

Latest comments

"Limiting"=none ??
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.