Celsius Transfers $125 Million Worth of ETH to Exchanges in the Past Week

Celsius has recently announced the unstaking of approximately $800 million worth of Ethereum (ETH). This decision has sparked concerns among many investors, who fear that the selling pressure on ETH may intensify in the coming days.

According to data from Arkham, a cryptocurrency analytics firm, Celsius, which declared bankruptcy last week, has transferred $125 million worth of Ethereum to major exchanges such as Coinbase and FalconX. The move is widely speculated to be a strategic decision to liquidate assets in the market.

During the past week alone, Celsius has deposited $95.5 million to Coinbase and sent an additional $29.73 million to FalconX. Despite these transactions, the company still retains a considerable amount of cryptocurrency assets, with $1.4 billion (equivalent to 540,000 ETH) remaining. Notably, Celsius’s wallets currently hold over 539,000 ETH (approximately $1.4 billion), nearly 9,800 BTC (valued at $419.2 million), and various other altcoins, including MATIC.

This is the second recorded instance of Celsius engaging in substantial Ethereum sales in recent months. In December 2023, the company reportedly sold $243 million worth of ETH alongside other altcoins, as reported by AZCoin News.

The situation took a new turn at the beginning of January 2024 when Celsius announced its decision to cease Ethereum staking, citing the need to prepare for asset liquidation and debt repayment to clients. Blockchain data indicates that the company was staking close to $800 million worth of Ethereum.

The total value of assets that Celsius is currently holding | Source: Arkham

The timing of Celsius’s decision to unstake Ethereum coincides with a period of robust growth for ETH. Investors are anticipating that, following the approval of the Bitcoin spot ETF, Ethereum could be the next asset to have its own ETF. Several major players on Wall Street have submitted applications to the SEC to launch Ethereum spot ETFs. The Securities and Exchange Commission is expected to make decisions on these applications between May and August of this year.

Larry Fink, CEO of BlackRock, one of the entities seeking to establish an Ethereum spot ETF, has expressed confidence that such a product would bring substantial value to the market.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

Follow us on Reddit

You might also like