The crypto market crash on Monday was caused by the general negative macroeconomic background, not the Celsius Network’s announcement of the suspension of withdrawals. This view was expressed by industry participants The Block.

On June 13, the crypto lending platform suspended withdrawals, swaps and transfers between accounts “due to extreme market conditions”. As of May, Celsius managed $11 billion in user assets.

Against this background, bitcoin price dropped below $23,000, with Ethereum prices failing at $1,200. Cryptocurrency market cap has dropped below $1 trillion.

One of the traders told the publication that crypto markets will “fall regardless of Celsius due to macroeconomics.”

On Monday, Bloomberg noted that the market has entered “a period of selling everything but the dollar.” Traders are fleeing to the “safe haven” for fear that the Federal Reserve may raise rates more aggressively than expected to fight inflation.

Banks Barclays and Jefferies raised their forecasts to 75 basis points. Some Wall Street analysts believe the rate will rise 1% immediately. Such a result could have negative consequences for high-risk assets such as cryptocurrencies. Earlier, the Fed had signaled that the increases in June and July would be 50 basis points, respectively.

“Our customers are more concerned with macroeconomic performance than with Celsius. The market is very volatile and the macro environment is dire, Aya Kantorovich, spokesperson for the institutional-focused crypto trading platform FalconX, told The Block.

Pension fund Caisse de dépôt et Placement du Québec (CDPQ), which invests in Celsius, drew the publication’s attention to the challenging market environment. The firm said investors were reducing risk across all asset classes amid the overall downturn.

“In this context, Celsius has been impacted by very challenging markets in recent weeks, particularly the high volume customer attraction,” CDPQ said. said.

Recall that rival service Nexo announced that it is ready to buy Celsius’s loan portfolio.