Ethereum Price at Risk as Celsius Transfers ETH to Exchanges
Celsius Network, the bankrupt crypto lender, has initiated its reimbursement plan by transferring its ETH holdings to various crypto exchanges. According to data from Arkham Intelligence, Celsius executed transfers totaling over $125 million worth of ETH last week.
Celsius Executes Transfers to Coinbase and FalconX
Between January 8 and January 12, Celsius transferred $95.5 million to Coinbase and $29.73 million to FalconX. Currently, Celsius Network’s balance sheet shows 584,601 ETH worth $1.47 billion, along with other cryptocurrencies.
Looks like Celsius took the opportunity to unload >$125M of ETH over ETF Week.
In the past week, they’ve deposited $95.5M to Coinbase and sent $29.73M to FalconX.
They still have $1.4 billion (540K ETH) remaining. pic.twitter.com/xgfX6yU5Ye
— Arkham (@ArkhamIntel) January 13, 2024
This move by Celsius indicates a potential selloff as the company aims to settle its liabilities during bankruptcy proceedings. After filing for bankruptcy in July 2022, Celsius has been taking steps to refund its creditors. In December 2023, the company sold $240 million worth of ETH, and recently, it announced its decision to unstake $465 million worth of Ethereum for distribution to creditors.
Additionally, Spotonchain’s on-chain data revealed that FTX and Alameda Research transferred 1,000 ETH worth $2.33 million to Coinbase during the same week.
Hot Take: Potential Impact on Ethereum Price
The recent movements by Celsius Network to transfer its ETH holdings to exchanges could have a destabilizing effect on the Ethereum price. With large amounts of ETH being sold off, there may be increased selling pressure in the market. This could potentially lead to a decline in the Ethereum price if demand does not match the supply. Traders and investors should closely monitor these developments and consider their impact on the overall crypto market.
By
By
By
By