The crisis is part of a larger trend in which the cryptocurrency market as a whole has suffered losses. Over the span of a week, the market lost more than $400 billion, bringing it below $1 trillion.

Ethereum (ETH) and Dogecoin (DOGE) suffered even bigger losses than Bitcoin, plummeting by almost 17%.

Analysts believe the crisis was caused by investors selling off due to inflation fears, and that the situation has been exacerbated by the cryptocurrency market's volatile character, implying that its high risk may dissuade investment.

Celsius Network, a cryptocurrency lending platform, has declared a stop in all "withdrawals, swaps, and transfers between accounts," citing "extreme market conditions."

The company issued a statement describing its suspension of activities and the reasons behind the move, saying: "We are taking this necessary action for the benefit of our entire community to stabilise liquidity and operations, while we take steps to preserve and protect assets."

These market disruptions come amid a significant increase in cryptocurrency gambling. A growing number of online casinos and betting platforms now allow players to deposit and use digital currencies to play online games.

Dedicated crypto-casinos are also on the increase, and the decentralised payment method benefits both the operator and the player by improving security, transaction speed, and more.