ETH Selling Pressure May Ease Up After Celsius Unstakes Countless Tokens
ETH prices could experience an upturn soon following the announcement by crypto lender Celsius, currently undergoing bankruptcy restructuring. Celsius, in the process of transitioning to a Bitcoin mining focus, has declared its intention to withdraw its holdings when it comes to the second largest cryptocurrency.
Unstaking Continues
Celsius, previously committed to incorporating staking into its operations, had been selling staking rewards on the open market to cover expenses related to the reorganization plan. Celsius recently stated that the company will unstake existing ETH holdings, which have generated valuable staking rewards income for the estate, to offset certain costs incurred throughout the entire restructuring process.
The significant unstaking activity expected in the next few days aims to release ETH for prompt distribution to creditors. According to data via the analysis tool Arkham, crypto wallets associated with Celsius have staked over $151 million worth of ETH, likely earning an annualized yield between 4-5%.
ETH Keeps Flowing
Although the staking rewards may not result in substantial ETH sales, they could have contributed to negative sentiment for the token, along with other factors such as interest in alternative blockchains. Concurrently, outflow data reveals that Celsius transferred over 30,000 ETH to custodian Fireblocks in the past week, some of which may have been deposited at the crypto exchange Coinbase, where it is possibly exchanged for stablecoins.
According to a post on X, in preparation of any asset distributions, Celsius has already begun the process of recalling and rebalancing assets to ensure ample liquidity for the foreseeable future.
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