Is Celsius Making A Last-Ditch Bitcoin Trade To Recover Value?

The Celsius Network has been dealing with a lot of trouble which has directly caused a panic in the cryptocurrency market. Meanwhile, the network has taken more risks in order to protect its position.

Celsius borrows 278 million DAI

According to Wu Blockchain, an address associated with Celsius has borrowed $278 million worth of DAI tokens in the Maker protocol. It has staked 17,919.37 Wrapped Bitcoin (WBTC). This is the largest personal debt position in the protocol. As reported, this position will face liquidation if the Bitcoin (BTC) prices fall to $22,584.

Bitcoin prices have collapsed by around 15% in the last 24 hours. BTC is trading at an average price of $23.350, at the press time. Leading the crash, the Celsius token went down by 50% to trade at $0.155 price level over the past 24 hours.

Peck Shield reported that Celsius has added another 2000 WBTC collateral to the same protocol. This position faces liquidation if BTC prices drop to the $18,387 level. The total collateral now amounts to more than $517.2 million with 21, 960.85 WBTC. The wallet can withdraw 4.81K wrapped Bitcoin at the moment. While the collateralization ratio stands at 185%. However, WBTC’s 24 hour trading volume has jumped by over to trade over $833.4 million.

Celsius moves 104K ETH to FTX

Earlier, it was reported that Celsius moved around 3,500 WBTC tokens (approx worth $89 million) to FTX. It also transferred around 50k Ethereum to the same exchange. It is mentioned that Celsius has moved about 104,000 Ethereum (ETH) and 9.5k WBTC to FTX over the past 3 days. ETH prices crashed by over 20% in the last 24 hours. It is trading at an average price of $1,191, at the press time.

Earlier, Celsius said that it is pausing all withdrawals, Swaps, and transfers over its protocol. It mentioned that it is done in acting in the interest of their community. Reacting to the situation, its competitor, Nexo offered to obtain Celsius’s outstanding collateralized loan receivables.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

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