RIYADH: Bitcoin, the leading cryptocurrency internationally, traded lower on Tuesday, falling by 9.68 percent to $23,206.48 at 8:30 a.m. Riyadh time.
Ethereum, the second most traded cryptocurrency, fell 9.49 percent to $1,227.04, according to data from Coindesk.
Coinbase to cut 1,100 jobs amid volatile crypto markets
Cryptocurrency exchange Coinbase Global Inc. said on Tuesday it would slash 18 percent of its workforce, or about 1,100 jobs, as part of efforts to rein in costs amid volatile market conditions.
The layoffs come a day after Bitcoin fell as much as 14 percent after major US cryptocurrency lending company Celsius Network froze withdrawals and transfers, in the latest sign of the financial market downturn hitting the cryptosphere.
Coinbase said earlier this month that it would extend its hiring freeze for the foreseeable future and rescind a number of accepted offers.
In a filing on Tuesday, the company said it expects to incur about $40 million to $45 million in total restructuring expenses, substantially all related to employee severance and other termination benefits.
Coinbase last month reported a 35 percent slump in total revenue to $1.17 billion for the three months ended March 31, missing analyst expectations and weighing on investor sentiment.
Binance, Celsius halt bitcoin redemption
Citing extreme market conditions, crypto lender Celsius on Monday blocked customers from withdrawing funds from its platform, which was immediately followed by Binance halting withdrawals of bitcoin for several hours, reported the Financial Times.
In a blog post, Celsius said it had frozen transfers between accounts and withdrawals to “stabilize liquidity and operations while we take steps to preserve and protect assets.”
On Tuesday, Bitcoin and Ether hit new 18-month lows as the company’s freezing of withdrawals sent investors into a tailspin, according to Reuters.
According to Singapore-based fund manager QCP Capital, the sell-off was triggered by Celsius’ suspension of withdrawals and Friday’s high US inflation data, which contributed to expectations of higher interest rates from the Federal Reserve.
“The market is now panicking about the impact and contagion if Celsius becomes insolvent,” said QCP Capital.
Globally, Bitcoin has declined over 50 percent over the past year but has dropped 28 percent since Friday.
Ether lost 10 percent, falling to $1,075, its lowest since January 2021.
(With input from Reuters)
