Data revealed that the lender had sent $96 million of its ETH holdings to Coinbase and another $30 million worth to FalconX.
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Celsius Network, a crypto lender facing bankruptcy, has revealed intentions to recall and rebalance its crypto assets. The goal is to get enough liquidity for potential asset distributions following approval of the company’s restructuring plan by a New York Bankruptcy court.
As part of this strategy, Celsius has started working on its plan to reimburse its creditors $2 billion in Bitcoin and Ethereum, along with company stocks of its new creditor-owned BTC mining company. While creditors welcome these steps, they do so with so much caution considering their history with Celsius
According to Arkham Intelligence, defunct crypto lender Celsius Network has transferred over $125 million worth of ETH to major exchanges between January 8 and January 12. Data revealed that the lender had sent $96 million of its ETH holdings to Coinbase and another $30 million worth to FalconX.
As of the latest update, Celsius retains approximately 539,000 ETH, valued at around $1.38 billion, alongside 9,799 bitcoins worth $420 million. While the crypto lender grapples with its bankruptcy proceedings, traders are concerned that a Celsius sell of will impact the markets negatively
Is a sell-off imminent?
Although this has the potential to cause a slight dump, traders are positive that there is fresh huge demand for crypto by institutions and the public at large
In a notable move reflecting the growing institutional interest in crypto, BlackRock the world’s largest asset manager, has reportedly acquired a substantial 11,500 Bitcoin within two days.
Given that the daily issuance of Bitcoin stands at just 900 BTC, BlackRock ate up 13 days’ worth of fresh BTC in two days of its ETF’s existence. Although this is just one institution, should the Bitcoin ETF maintain its current prices, the growing demand could bring about a supply crunch, nullifying concerns about sell-offs from FTX and Celsius.