Bitcoin slides after crypto lender Celsius Network freezes withdrawals

Bitcoin tumbled on Monday after major U.S. cryptocurrency lending company Celsius Network froze withdrawals and transfers..

citing "extreme" conditions, in the latest sign of how financial market turbulence is causing distress in the cryptosphere.

The Celsius move triggered a slide across cryptocurrencies, with their value dropping below $1 trillion on Monday for the first time since January last year, dragged down by 11% fall in the largest token bitcoin .

After Celsius's announcement, Bitcoin touched an 18-month low of $23,476. No.2 token ether dropped as much as 16% to $1,177, its lowest since January 2021.

Crypto markets have dived in the past few weeks as rising interest rates and surging inflation hurt riskier assets across financial markets.

The collapse in May of the terraUSD and luna tokens also shook the industry.

"It's still an uncomfortable moment, and there's some contagion risk around crypto more broadly," said Joseph Edwards, head of financial strategy at fund management firm Solrise Finance.

Celsius offers interest-bearing products to customers who deposit cryptocurrencies at its platform, and then lends out cryptocurrencies to earn a return.