The crash is part of an overall trend that has seen the crypto market as a whole face losses. Over the course of a week, the market has lost over $400bn, shrinking it to below $1trn.
Ethereum (ETH) and Dogecoin (DOGE) experienced even greater losses than Bitcoin, with both falling by roughly 17%.
Analysts claim the crash can be attributed to investors selling off amid inflation fears and that the problem has been compounded by the volatile nature of the cryptocurrency market, suggesting its high-risk nature may work to discourage investors.
Crypto lending platform Celsius Network announced a pause in all “withdrawals, swap and transfers between accounts,” citing “extreme market conditions.”
The company issued a statement detailing its halt in operations and the reasons behind the decision, saying: “We are taking this necessary action for the benefit of our entire community to stabilise liquidity and operations, while we take steps to preserve and protect assets.”
These market disturbances come amid a marked rise in crypto gambling. An increasing number of online casinos and betting platforms now offer users the option to deposit, and use digital currencies to play online games.
Dedicated crypto-casinos are also on the rise, and the decentralised payment method offers benefits to both operator and player that include improved security, transaction speed and more.