Bradley Keoun is the managing editor of CoinDesk's Markets team. He owns less than $1,000 each of several cryptocurrencies.

Parikshit Mishra is the news editor for CoinDesk during the mid Asia and early European hours. He does not have any crypto holdings.

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

Nikhilesh De is CoinDesk's managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.

Good morning, and welcome to First Mover. I’m Bradley Keoun, here to take you through the latest in crypto markets, news and insights. (Lyllah Ledesma is off.)

  • Price point: Bitcoin tumbles to $23,000 as fears mount of fresh systemic risks, with financial markets still under threat from the Federal Reserve's campaign to stamp out inflation.
  • Market moves: The crypto lender Celsius jolted traders with the news that it was pausing withdrawals due to "extreme market conditions."

Price point

Bitcoin (BTC) suffered one of its worst price declines of the year, tumbling alongside ether (ETH) and other cryptocurrencies as a fresh wave of panic struck traders just one month after the Terra blockchain's meltdown.

As of press time, bitcoin was down 11% to about $23,900, extending a losing streak that has now stretched to seven straight days.

Ether, the native token of the Ethereum blockchain, plunged 16% to $1,232. The overall market capitalization of cryptocurrencies fell below $1 trillion for the first time since January 2021.

The latest sell-off came as fears emerged of a new potential systemic threat to digital-asset markets, after the crypto lending service Celsius announced in a blog post that it was pausing withdrawals amid "extreme market conditions."

The price of Celsius' CEL token fell over 50% after the news came out.

Analysts also cited growing concern that the Federal Reserve may have to step up its campaign to tighten monetary conditions after a report Friday showed the U.S. inflation rate unexpectedly accelerating to a new four-decade high. Cryptocurrencies, like stocks, have come under harsh downward price pressure this year from the central bank's push to withdraw excess liquidity from financial markets.

In traditional finance, U.S. stock futures were down, pointing to a dismal start to the week as signals appeared in the bond market that recession risk is rising.

Market moves

Nexo Proposes Celsius Buyout as Rival Lending Platform Halts Withdrawals - by Oliver Knight and Nikhilesh De

Cryptocurrency lending platform Nexo expressed interest in buying certain assets from rival Celsius after Celsius said it was freezing withdrawals and transfers because of extreme market conditions.

In a letter to Celsius on Monday, Nexo said it was particularly interested in Celsius’ collateralized loan portfolio. Nexo publicized the letter, which didn't mention a price, in a tweet. The letter was from a business entity named Nexo AG in Zug, Switzerland, though Nexo's operations are based out of Sofia, Bulgaria, according to executives at the firm.

Nexo said it was looking to acquire assets “mostly or fully of collateralized loan receivables secured by corresponding collateral assets, as well as brand assets and the customer database."

Celsius wrote earlier in a blog post that "We are working with a singular focus: to protect and preserve assets to meet our obligations to customers.”

“Our ultimate objective is stabilizing liquidity and restoring withdrawals, Swap, and transfers between accounts as quickly as possible," Celsius wrote. "There is a lot of work ahead as we consider various options. This process will take time, and there may be delays."

Latest headlines

Today’s newsletter was edited by Bradley Keoun and produced by Parikshit Mishra.

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The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Bradley Keoun is the managing editor of CoinDesk's Markets team. He owns less than $1,000 each of several cryptocurrencies.

CoinDesk - Unknown

Parikshit Mishra is the news editor for CoinDesk during the mid Asia and early European hours. He does not have any crypto holdings.

CoinDesk - Unknown

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

CoinDesk - Unknown

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

CoinDesk - Unknown

Nikhilesh De is CoinDesk's managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.

CoinDesk - Unknown

Bradley Keoun is the managing editor of CoinDesk's Markets team. He owns less than $1,000 each of several cryptocurrencies.

CoinDesk - Unknown

Parikshit Mishra is the news editor for CoinDesk during the mid Asia and early European hours. He does not have any crypto holdings.

CoinDesk - Unknown

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

CoinDesk - Unknown

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

CoinDesk - Unknown

Nikhilesh De is CoinDesk's managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.