The recent slump in Ethereum’s (ETH) price could be nearing its end, thanks to a major development in the ongoing Celsius bankruptcy case, Jed Breed, founder of venture capital firm Breed, noted in a series of posts on X (formerly Twitter).
Onchain data shows @CelsiusNetwork has sold $243M of ETH in the past 30 days:https://t.co/GHUR9iWIGc
It seems this is why ETH has struggled to catch a bid in the recent run up.
But why is Celsius doing this? I looked into the recent bankruptcy saga to find out why…
A 🧵
— Jed Breed (@JedBreed) December 20, 2023
On-chain data shows Celsius has sold approximately $243 million worth of ETH over the past month, raising concerns about its impact on the cryptocurrency’s price. However, according to Breed, this selling pressure may be over, potentially paving the way for a significant price rally in the coming months.
Breed believes that “ETH has struggled to catch a bid in the recent run-up” due to the liquidation of some of Celsius’ coin holdings. This is linked to the ongoing bankruptcy proceedings and the approval of US Bitcoin (MiningCo) as the new owner of Celsius’ assets.
In a court filing made on November 20, the crypto lender announced its decision to transition to a Bitcoin-mining-only company, MiningCo. This decision arose after it faced some issues with the U.S. Securities and Exchange Commission (SEC) regarding its initial plan to be acquired by Fahrenheit, an investment vehicle that won a bidding contest in May of this year.
MiningCo’s acquisition is to be funded by $250 million in fiat currency, necessitating the ETH sale to raise the required funds. Breed opined that:
On the positive side, since Celsius has already cleared the amount needed for MiningCo ($250m ETH sold), the selling pressure may be complete, and ETH could rip up over the coming months with the spot ETH ETF narrative on the horizon.
At press time, ETH changed hands at $2,210, according to data from CoinMarketCap.
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