Voyager Digital tries to balance in the bear market - what the restrictions on withdrawals led to

The bear market in cryptocurrencies continues to be accompanied by instability in the industry as a whole. Voyager Digital,The Toronto-based crypto-brokerage platform has become the latest victim to face liquidity problems due to the protracted crash. The company lowered its daily withdrawal limit to $10,000.

Voyager lowers withdrawal limits to $10,000

On Wednesday, Voyager posted an update, according toto which the withdrawal limit was lowered from $25,000 to $10,000. The lowering of the limit came shortly after the company revealed its reliance on Three Arrows Capital, a currently struggling cryptocurrency hedge fund.

The company joins the list of leadingcrypto firms that announced they would stop withdrawing funds due to a prolonged negative market trend. Just this month, several companies, including Celsius Network, Babel Finance and Finblox, suspended their services citing extraordinary market conditions.

Voyager's native token, VGX, after the announcementfell by 6.8%. The coin may follow the same trend as CEL recording a significant drop after the Celsius network stopped withdrawing funds. While VGX has fallen, the global cryptocurrency market capitalization has grown by 3% in the last 24 hours.

Investors could buy VGX and fightselling pressure if the company announced a recovery plan. However, market sentiment remains bearish after the company disclosed its positions on Three Arrows Capital.

Voyager connection to Three Arrows Capital

On Wednesday, Voyager (VOYG) shares fell more than60% after the company reported more than $650 million in investment in the struggling Three Arrows Capital fund. The total amount is 15,250 BTC (about $307 million) and the USDC stablecoin ($350 million).

Voyager management approached 3AC torepay a loan. The company's announcement says it has submitted a $25 million redemption request by today, June 24th. She also demanded repayment of the entire loan in BTC and USD by June 27th. However, it is not known whether there will actually be a repayment.

Voyager is a platform that supportscryptocurrency trading and offers cryptocurrency staking services. The company needs liquidity to pay out income to users who have deposited funds on the platform.

Voyager is trying to find a solid foundation amongbearish sentiment. So far, the exchange has secured a $200 million loan from Sam Bankman-Fried's Alameda Research and another $350 million USDC loan to process customer redemption requests. Compass Point Research Analysts & Trading LLC noted that this development "raises questions about the survivability" of Voyager.