Celsius warns that it will need time to stabilize himself because Bitcoin flows around the $ 20,000 mark

Celsius Network, the cryptocurrency loan, who shook the markets last week, has warned that it was "needed time" to normalize its business, since companies in the entire industry are exposed to growing financial pressure by selling digital assets.

The warning of the crypto loan company came after a number of shocks on the markets for digital assets had drawn prices down. The price of Bitcoin, the largest cryptocurrency, fell under 20,000 dollars for the first time since November 2020.

Bitcoin fell by 3.6 percent to $ 19,864 compared to the dollar on Monday and thus undo an earlier rally that had once again driven it over the $ 20,000 mark.

The decline in the most active digital currency has aroused concerns regarding forced liquidations of large-fitting bets on the cryptoma markets, which could boost further sales and increase a credit clamp that has already led to turbulence in other crypto loans.

"As it has been a priority since our company was founded, we maintain an open dialogue with supervisory authorities and civil servants," wrote Celsius on Monday in a blog post. The lender added that he was pausing the social media activities on Twitter and Reddit, which he used to maintain contact with customers.

"We are planning to work together with supervisory authorities and civil servants in relation to this break and the determination of our company to find a solution," it said without further details.

The crypto chaos started when the stable coin Tether, who was used to make trade easier due to its connection to the US dollar, experienced his breach of dollar bond last month. Instability quickly spread to another stable coin and the associated cryptocurrency Luna, which is a great player in decentralized financing, a sector of industry that tries to abolish centralized agents such as banks.

The pressure due to the broad sale of cryptocurrencies has increased further. On Friday, the crypto loan Babel Finance, based in Hong Kong, interrupted and refunded with reference to "unusual liquidity pressure", while the crypto hedge fund Arrows, based in Singapore

On Monday, another crypto exchange Hoo based in Hong Kong announced a stop of the transactions after the withdrawals of customers had become so great that they risked the company's available funds.

HOO said in a blog post that "attempts to rewrite medium and long-term assets in an orderly and reasonable way" in order to facilitate withdrawals that would be resumed within 72 hours.

Additional reporting by William Langley in Hong Kong