Celsius Unloads Over $125M in Ethereum, Stirs Crypto Market Speculation
Rebeca Moen Jan 15, 2024 10:20
Celsius Network's transfer of over $125M in Ethereum to exchanges amid bankruptcy stirs speculation in the crypto market.
Celsius Network, a major cryptocurrency lending platform, transferred over $125 million worth of Ethereum (ETH) to various exchanges, a move that has sparked significant curiosity and speculation in the crypto world. According to Arkham Intelligence, Celsius deposited approximately $95.5 million in ETH to Coinbase and transferred an additional $29.73 million to FalconX, leaving it with about 539,000 ETH tokens valued at around $1.38 billion.
This substantial transfer follows Celsius's declaration of bankruptcy, highlighting a shift in its strategy towards liquidating assets to meet its liabilities under the bankruptcy proceedings. The company, which had been a dominant player in the cryptocurrency lending market, found itself in financial turmoil, leading to this drastic measure.
Celsius's bankruptcy announcement has been a critical point in its ongoing financial challenges. Despite the sizeable transactions, the company retains a significant cryptocurrency portfolio, including over 539,000 ETH and 9,800 BTC, indicating a broader strategy to manage its assets amid financial restructuring.
The movement of such a large volume of ETH into the market by Celsius could potentially exert downward pressure on its value. However, the recent approval of the Bitcoin Spot ETF and the ensuing rally in the altcoin market have somewhat mitigated this effect. ETH's value increased by 13% over the past week, indicating resilience in the face of these large-scale asset movements.
Celsius wasn’t the only firm moving crypto holdings to exchanges. Bankrupt entities FTX and Alameda Research also transferred significant funds to centralized exchanges, totaling $28.2 million in digital assets. This includes 402.6 Wrapped Bitcoin, 3,200 Ethereum, and other digital assets. Like Celsius, these firms have been attempting to manage their assets to repay creditors and affected customers.
The crypto market is closely monitoring Celsius’s strategy in dealing with its financial challenges. The impact of its actions, especially on the Ethereum market, is of significant interest given the platform’s considerable holdings in the cryptocurrency. The bearish sentiments and the decline in CEL’s value have led many traders to close their positions, reflecting the market's response to these developments.
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