Crypto market value slumps under $1 trn for first time since Jan 2021

The value of the cryptocurrency market on Monday fell below $1 trillion for the first time since January 2021, according to data site CoinMarketCap, reaching as low as $926 billion.

The largest cryptocurrency, bitcoin, was down more than 9% on the day, falling to an 18-month low of $23,950.

Meanwhile, cryptocurrency lending firm Celsius Network will pause withdrawals and transfers between accounts due to "extreme market conditions", the company said on Monday, in the latest sign of pressure in the crypto industry.

Ether, the world's second-largest cryptocurrency, dropped more than 8% to $1,303, its lowest since March 2021.

"We are taking this necessary action ... in order to stabilize liquidity and operations while we take steps to preserve and protect assets," the company said.

"Furthermore, customers will continue to accrue rewards during the pause in line with our commitment to our customers." Celsius Network, which raised $750 million in funding late last year, is a significant player in crypto lending.

It offers interest-bearing products to customers who deposit their cryptocurrencies with the company, and lends out crypto currencies to earn a return.

As of May 17, the company had processed $8.2 billion worth of loans and had $11.8 billion in assets, according to its website.

It said in August last year that it had more than $20 billion in assets.

While crypto lending has become increasingly big business, the sector has come under regulatory scrutiny, particularly in the U.S.

Crypto markets have been under pressure in recent months, falling alongside other so-called risk assets as interest rates have risen around the world.

Price falls have also both been caused by and contributed to the collapse of some crypto projects. Most notable was the fall of stablecoin TerraUSD, which last month broke its dollar peg and collapsed in value, rocking the crypto industry.