Why is the cryptocurrency falling so fast and what decision has dealt a major blow to the bitcoin?

 Why is the cryptocurrency falling so fast and what decision has dealt a major blow to the bitcoin?

Buy, borrow or exchange cryptocurrency and make a profit.

 These are the services that the platform called Celsius, which is considered a major player in the world of digital currency, provides to its customers.

 But last Sunday, the company decided to freeze the accounts of 1.7 million customers in view of the market situation.

 The decision, dubbed "Correlato" by cryptocurrency experts, triggered a downward trend in the prices of the two major currencies, bitcoin and etherium, which has continued ever since.

The term correlative is commonly used to refer to economic decisions when money is available but not allowed to be used. It all started with the decision of Argentina in 2001 when the government banned the withdrawal of money from the bank.

 Ellis Liu, a senior associate at Wisdom Tree Firm, said the crypto market was uncertain earlier this year due to rising interest rates, inflation and a downturn in global markets.

 It should be noted that the price of bitcoin has decreased by about 50% while the price of etherium has decreased by more than 60%.Experts believe that this has had a negative impact on other digital currencies and reduced their value, which has put other cryptocurrency platforms in a difficult position.

 What happened

 On Sunday, Celsius's own digital currency, the CEL, began to plummet, and that's where the issue began.

 As the value of CEL plummeted, the Celsius firm decided to impose a ban on consumers, removing the possibility of anyone withdrawing, transferring or converting cryptocurrencies from the account.

 The firm did not elaborate on how long the facilities would be closed.

 Celsius's decision also affected Binance, the world's largest cryptocurrency exchange platform, and forced it to suspend bitcoin issuance for several hours.

According to the Celsius company, which has offices in the United States, the United Kingdom and Lithuania, the decision to freeze the account was made in the best interests of consumers so that steps could be taken to protect their assets.

 It should be noted that in just one year, the value of Celsius company's currency has dropped from seven US dollars to zero point twenty dollars.

 The Celsius system rewards its customers with high interest rates for keeping cryptocurrencies in the network.

 This means that if a bitcoin holder stores his currency on the Celsius platform, he will be rewarded in return. In return the user agrees not to make any transaction with his currency.

 In general, the longer a person keeps his digital currency in store, the greater the reward. On the other hand, consumer currency is used through blockchain.

There is no legal protection

It is like a system where one puts one's money in a savings account in a bank. The only difference is that unlike the banking system, there is no legal protection in the digital world.

 According to Celsius's website, the company pays interest at 7% on currencies such as USDC and Tether, 7.25% on polygon, 6% on etherium and 6.25% on bitcoin.

 Given the market conditions and interest rates, no ordinary bank in the world can offer such a profit.

 Following the recent decision, Celsius has announced that customers will continue to receive rewards while the account is frozen.

 In the wake of these events, Gary Jensler, chairman of the SEC, America's largest economic regulator, has warned against profiteering promises that may seem unlikely to come true.

 "In today's world, how can anyone promise to make such a profit without providing complete information?"

 Earlier in March, three European economic authorities warned consumers that cryptocurrency businesses were at risk and that their use as an investment or transaction would not benefit most people.

Despite all these statements, Sam Theodore, a senior consultant at Scope Group, says that "the fever of cryptocurrency is not going to go away anytime soon." Investing in currency.

 "Unfortunately, there are no statistics on how many of these investors know how the cryptocurrency works and the risks involved," he said.

 Paul Donovan, chief economist at UBS, says the collapse of the cryptocurrency market is not important for the real economy.

 "Corruption is falling again," he says. Does it matter? no. Corruption is a gamble, not an investment. The economy will benefit when the resources used in the cryptocurrency are used for useful purposes.