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The cryptocurrency market dropped below $1 trillion for the first time in more than a year after the popular crypto lending platform Celsius announced it was suspending all withdrawals amid "extreme market conditions," Forbes reports.
Bitcoin, the most valuable cryptocurrency by market cap, saw its value drop below $24,000 -- about 14% -- which was its lowest level during the past 18 months following Celsius' announcement.
Crypto exchange Binance also announced its decision to temporarily suspend Bitcoin withdrawals amid the drop, with CEO Changpeng Zhao citing a "struck transaction causing a backlog."
Ethereum, which is the second most valuable cryptocurrency by market cap, also experienced a significant drop of more than 18.3%, with its value dipping below $1,200.
Other cryptocurrencies significantly affected by the market wide selloff include BNB (15% drop), Dogecoin (18.3%) and Solana (18.9%).
Celsius shared a blog post announcing its decision to pause withdrawals shortly after midnight on Monday.
"Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts," the post stated. "We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations.
"Acting in the interest of our community is our top priority. In service of that commitment and to adhere to our risk management framework, we have activated a clause in our Terms of Use that will allow for this process to take place. Celsius has valuable assets and we are working diligently to meet our obligations."