Celsius and FTX Crypto Funds On the Move
Recent on-chain data reveals that Celsius Network, a defunct crypto lender, has transferred 34.08 million MATIC to the crypto exchange Binance. Similarly, a wallet address linked to Alameda Research, the sister company of defunct crypto exchange FTX, has sent 135 WBTC to Binance, as well as 207 WBTC and 1150 ETH to Wintermute.
These transactions are significant because Celsius and FTX are currently in a bankruptcy liquidation process. The transfer of these funds to trading platforms like Binance suggests that a selloff might be imminent.
Celsius has been making major moves in the market recently. They transferred $125 million worth of ETH to various crypto exchanges last week, which could have contributed to the recent decline in the crypto market.
Selloffs by Alameda could be part of FTX’s repayment plan, considering the defunct trading firm was used by Sam Bankman-Fried (SBF) to defraud FTX customers.
Another Whale Contributing To Recent Market Downturn
Grayscale is believed to have played a significant role in the recent downturn of the crypto market. The asset manager had to offload some of its BTC holdings to fulfill redemptions from GBTC investors after it was converted into a Spot Bitcoin ETF.
Arkham Intelligence, a crypto analytics platform, revealed that Grayscale sent out another 12,870 BTC from their wallets. This brings the total number of BTC deposited into Coinbase by the asset manager to 47,900 BTC, worth around $1.97 billion based on current prices.
JPMorgan predicts that Grayscale’s GBTC could experience an outflow of up to $3 billion. This could lead to more pain in the market as the asset manager will have to sell more BTC to fulfill these redemptions.
Hot Take: Imminent Selloff Threatens Crypto Market Recovery
The recent movements of Celsius, FTX, and Grayscale suggest that a further downturn in the crypto market might be on the horizon. The transfer of funds by these entities to trading platforms like Binance indicates a possible selloff in the near future.
If Celsius and FTX dump their tokens on the market as part of their bankruptcy liquidation process, it could further contribute to the decline. Additionally, Grayscale’s offloading of BTC holdings to fulfill investor redemptions could exacerbate the situation.
Investors should remain cautious and closely monitor market developments as they prepare for potential market volatility and take appropriate risk management measures.
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