Celsius Network, currently undergoing bankruptcy proceedings, executed substantial Ethereum transactions worth $40 million on Coinbase, sparking uncertainty in the crypto community. These actions are part of their ongoing efforts to meet financial obligations and reach agreements with creditors, despite holding a significant Ethereum reserve.
Recently, Celsius’s wallet deposited 18,000 ETH (equivalent to $40 million) on Coinbase, as per a recent tweet from Lookonchain, a prominent blockchain analytics firm. This follows a pattern of consistent Ethereum deposits by Celsius, totaling an astonishing 280,760 ETH (or $621 million) across various platforms, including Coinbase, FalconX, and OKX since November 13.
The #Celsius wallet deposited 18K $ETH($40M) to #Coinbase again 12 hours ago.#Celsius has deposited a total of $280,760 $ETH($621M) to #Coinbase, #FalconX, and #OKX since Nov 13.
And #Celsius currently holds 540,029 $ETH($1.2B).https://t.co/3gGOucC9gY pic.twitter.com/cNxa0Wgd73
— Lookonchain (@lookonchain) January 24, 2024
Celsius Unleashes Uncertainty in the Ethereum Market
Currently, Celsius holds a total of 540,029 ETH, valued at approximately $1.2 billion. Arkham Intelligence, another blockchain analytics provider, revealed that Celsius engaged in Ethereum sales of over $125 million between January 8 and January 12. These sales are part of a strategic plan to satisfy outstanding debts and fulfill the requirements of the ongoing bankruptcy proceedings.
The current market price of Ethereum is $2,226, reflecting a 0.8% increase in the last 24 hours, although it experienced a 12.6% decrease in the past week. ETH trading volume also declined by 13% in the last 24 hours, with a total value of $13,201,528,442. On the other hand, its market capitalization experienced a slight growth of approximately 2.2%, reaching a total just above $267 billion dollars.
With the community already grappling with recent market volatility, this move by Celsius adds another layer of uncertainty. The key question is how the Ethereum price will react to such a significant liquidation by a major player like Celsius. As the beleaguered company navigates the complexities of its restructuring process, all eyes will be on how these transactions unfold and whether they will have broader implications for the ETH market and the blockchain industry as a whole.
