Crypto lending platform Celsius sparked uncertainty in the Polygon (MATIC) market by making substantial transfers to exchanges during its bankruptcy process. After a series of significant setbacks in the crypto industry in 2022, the unwinding of assets tied to struggling companies contributed to selling pressure in the cryptocurrency market.
Celsius, one of the affected cryptocurrency lending platforms, recently intensified efforts to initiate the distribution of assets to its creditors. Amid these efforts, the bankrupt platform made significant transfers of Polygon (MATIC) to exchanges, causing a reaction in the cryptocurrency’s price.
#Celsius Network deposited 25.75M $MATIC ($21.26M) to CEX at $0.826 on avg in the past 8 hours as the price dropped:
• 22.73M $MATIC ($18.79M) to #Binance
• 3.02M $MATIC ($2.47M) to #CryptocomCurrently, Celsius Network still holds 34.09M $MATIC ($27.56M) in the address.
To… pic.twitter.com/IxRCedTH7V
— Spot On Chain (@spotonchain) January 18, 2024
According to reports on January 18, the crypto intelligence platform Spot on Chain noted that Celsius moved 26 million MATIC, equivalent to about $21.26 million, in two transactions to Binance and Crypto.com. These transactions, totaling 22.73 million MATIC (approximately $18.79 million) and 3.02 million MATIC (around $2.47 million), respectively, generated some volatility in the market. These movements occurred between 5 and 6 pm UTC on January 17, according to Etherscan data. Spot on Chain estimated an average price of $0.826 during these transfers.
After these transactions, the MATIC price experienced a 3% drop, reaching a minimum of $0.802. However, in an unexpected turn, the asset now begins to show signs of recovery, trading around $0.82 at the time of writing. In the best-case scenario, this rebound could push the price to highs around $0.988.
Despite Celsius Movements, MATIC Appears to be in a Consolidation and Recovery Process
It is worth noting that the MATIC price has been consolidated in a range since November 2023, after breaking a months-long downtrend. Investors hope that the asset can gain the momentum to make a decisive break above this consolidation, confirming the formation of a “bull flag.” Analysts speculate on a possible bullish run towards $1.8 if this breakout is confirmed.
In this scenario, it is important to highlight that Celsius still holds over 34 million MATIC, valued at over $27 million at current rates. Additionally, MATIC has faced uncertainty recently due to accusations against the Polygon Foundation, which is accused of misappropriating 400 million tokens.
This episode reflects the persistent effects of bankruptcy proceedings in the cryptocurrency market and underscores the interconnection of events in the crypto space, where the actions of one platform can influence the behavior of digital assets.
