Bankrupt cryptocurrency lender Celsius sold $250 million worth of digital assets, including Ethereum, in the past 30 days, according to on-chain data.
Cryptocurrency Detective Apes_Prologue reported that Ethereum accounted for $243 million, or 97%, of the bankrupt company’s sales activity during the period.
Separately, blockchain analysis company Peckshield Confirmed The defunct lender Over 10,000 transferred ETH, In the last 24 hours, approximately $24 million worth of funds were delivered to cryptocurrency exchange Coinbase and cryptocurrency brokerage platform FalconX.
meantime, Apes_Prologue added that Chelsea also dumped more than $3 million in stablecoins, $1.3 million in Chainlink LINK and $1.4 million in Pax Gold. Other assets the company sold included Polygon’s MATIC and Avalanche’s AVAX tokens, worth about $150,000 each.
Why is Celsius selling?
Jef Breed, founder of venture capital firm Breed VC. explained Celsius may also dump bags of ETH to capitalize MiningCo, a Bitcoin mining company that will be owned by the failed company’s creditors.
Breed suggested that Fahreint (NewCo), the main bidder in Chelsea’s first bankruptcy auction, faces regulatory hurdles in executing its plans for Bitcoin mining and Ethereum staking services. As a result, the bankrupt company shifted its focus to mining ventures overseen by MiningCo.
As a result, Breed reasoned that the company would need to liquidate some of its ETH holdings to raise $250 million in fiat capital, an initial plan that required $450 million of liquid cryptocurrency for Fahreint’s proposed strategy. It was a different approach.
What’s next for ETH price?
Observers believe Chelsea’s selling activity may have suppressed the recent ETH price surge.
Source of data CryptoSlate This shows that the price of ETH is struggling significantly compared to other large cryptocurrencies such as Solana, Cardano, and Avalanche, which have surged in value over the past 30 days.
For context, the price of SOL is up about 20% over the past 7 days, while ETH is up only 2% over the same period.
However, market analysts suggest that “ETH could be on a tear in the coming months as the selling pressure could be consummating and talk of a spot ETH ETF could begin soon.” ETH is trading at $2230 at press time.