Embattled crypto lender Celsius is in the spotlight again, this time for its significant Ethereum (ETH) transfers to centralized exchanges. These movements, combined with the activities of altcoin whales, triggered a volatile 6.5% decline in ETH’s price, raising concerns about potential market manipulation and Celsius’ financial stability. Here are the details
Leading altcoin Ethereum is in the sales process
Lookonchain, a Blockchain analysis platform, revealed large ETH withdrawals from top exchanges in the last 24 hours. A suspicious whale withdrew 15,856 ETH, or approximately $38 million, from Bitfinex and other exchanges. In addition, six new wallets pulled 7,756 ETH from Binance and Kraken, further increasing the outbound flow.
However, the most important transactions came from Celsius himself. About a day after reporting the whale movements, Lookonchain detected a significant investment of ETH from a Celsius wallet. The lender aligned itself with its strategy of repaying creditors through centralized exchanges, sending 13,000 ETH ($30.34 million) to Coinbase and 2,200 ETH ($5.13 million) to FalconX.
ETH price is declining
These seemingly disparate events came together to create a perfect storm for the price of Ethereum. Heavy selling pressure from both Celsius and the potential whale liquidation has coincided with growing concerns about Celsius’ shaky financial fundamentals. Fearing the possibility of further massive ETH dumps from the embattled lender, investors rushed to exit their positions, triggering a series of sell orders.
The result? The price of ETH fell by a steep 6.5% in 24 hours, marking the largest daily loss since the launch of US Bitcoin ETFs. At the time of writing, ETH price is fluctuating around $2,345 and is still affected by yesterday’s decline. While the exact reason behind the whales’ withdrawals is unknown, their timing, along with Celsius’ deposits, raises questions about possible coordination or market manipulation. Did the whales anticipate the movements of Celsius and take advantage of the expected price drop? Was there any collusion between the two parties?
Celsius tries to repay creditors
These questions highlight the nature of large-scale crypto transactions and the potential for sensitivity in an emerging market. The situation is equally delicate for Celsius. While efforts to repay creditors are laudable, the dependence on large ETH sales puts further pressure on an already volatile market and casts doubt on its financial reserves.
The company needs to address investors’ concerns with transparency and a well-defined plan to restore stability. In conclusion, the recent ETH price drop is a stark reminder of the interconnectedness and volatility of the cryptocurrency market. Large-scale whale movements and the actions of struggling companies like Celsius can have a significant impact on prices and highlight the need for greater transparency and regulatory oversight. Ultimately, only time will tell whether Celsius can weather this storm and navigate his turbulent path to recovery.
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