The cryptocurrency market lost more than $200 trillion in the last few days. Many attribute this crash to Celsius’s withdrawal modifications.

The cryptocurrency market suffered a second crash this weekend. The cryptocurrency market’s total cap fell from $1.2 trillion just a few days ago, to $945 billion today.

Bitcoin, the world’s leading cryptocurrency, has lost more than 17% of its value over the past 24 hours and currently trades around $23k per coin.

Some market analysts attribute the latest crash in part to Celsius Network’s decision to suspend its withdrawals.

Celsius Network has been one of the largest lenders in the cryptocurrency industry. The company controls more than $12 billion in assets under management.

The company told its users that;

“Due the extreme market conditions today, we have decided to suspend all withdrawals, swaps and transfers between accounts. Our top priority is to act in the best interests of our community. We have included a clause in our Terms and Use to allow this to happen. This is to honor that commitment as well as to comply with our risk management framework. Celsius has valuable assets, and we are working diligently to meet our obligations.”

However, Marcus Sotiriou from GlobalBlock, a UK-based analyst, said that the market crash wasn’t caused by the Celsius Network suspending withdrawals. He stated ;

“Despite the fear, uncertainty, and doubt the Celsius debacle has caused, the sell-off started at the beginning of the weekend on Friday, after the U.S. inflation data was released. CPI rose 0.3% in May to 8.6%, a 0.3% increase over April. This indicates that inflation is increasing rather than decreasing. This is the biggest contributor to the recent decline. It results in a Federal Reserve that is more hawkish. They are now required to take more liquidity out of the market to lower inflation. When liquidity is removed, risk-on assets are hit the hardest, which includes crypto.”

Despite continued bearish sentiment, Sotiriou stated that investors should remember this period of persistent inflation should end and that the crypto industry would become more efficient as incompetent and unsecure firms are eliminated.