With its recent approval from a New York Court to repay a staggering $2 billion in debts, Celsius Network has taken center stage in the ever-changing crypto landscape.
This action sparked a wave of asset transfers, attracting the attention and speculation of the crypto community.
With the court’s approval, Celsius Network is preparing to repay its debts by returning around $2 billion in Bitcoin, Ethereum, and shares in a crypto mining company.
This strategic move aims to reestablish financial stability and rebuild trust in the crypto community. Recent Arkham Intelligence reports highlight Celsius Network’s significant asset movements, particularly in Ethereum.
Over $125 million in Ethereum was transferred to major crypto exchanges, including $95 million to Coinbase and $30 million to FalconX.
Celsius currently holds around 539,000 Ethereum worth $1.38 billion and 9,799 Bitcoins worth around $417 million.
These large asset transfers have sparked speculation in the crypto community, with fears of a market dump and a subsequent drop in Ethereum prices.
Experts believe that the overall market resilience may absorb these transfers, particularly if large institutions show interest in acquiring the crypto.
In the meantime, FTX and its affiliate, Alameda Research, have moved $28 million in cryptocurrencies across various exchanges.
While this has raised concerns about a possible massive sell-off, the current market conditions may attract institutional buyers, mitigating the impact of such transactions.
The recent approval of a Bitcoin ETF has increased market volatility. Notably, investment firm BlackRock purchased 11,500 Bitcoins in less than two days, a significant amount given the limited new Bitcoin supply.
If demand for Bitcoin continues to rise, BlackRock’s growing interest could lead to scarcity. Furthermore, after the CEO expressed support for the second-largest crypto, there is speculation that BlackRock may enter the Ethereum market.
Mohammad Ali is a fintech and cryptocurrency writer who has been covering the intersection of finance and technology for several years. Ali has a deep understanding of the financial industry and the ways in which technology is changing it, with a special focus on the rise of digital currencies and blockchain technology.
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