Celsius Network has transferred 25,000 WBTC worth $582.9 million to the FTX exchange after their recent liquidity crisis. These BTC holdings will pay off the debt owed to the MakerDAO protocol. With such a step, Celsius will clear all outstanding debts to MakerDAO; however, it can lead to a chain reaction further breaking the market.
What’s the Outcome Expected?
The outcome doesn’t look grim at all since when WBTC gets converted to BTC on the Celsius Network, users can withdraw their frozen positions. The absence of liquidity at the moment has created problems for the protocol. Most of the users couldn’t withdraw funds and this move will help them cash out from the protocol.
Not only this, even Mt.GOX users have some great news at the moment. The infamous bankrupt exchange will release 150,000 BTC into the market. The wait for Mt.Gox users is over following such an event.They will be getting their lost BTCs after more than 8 long years of waiting.
What Does It Means for the Market?
The market for BTC has a new found momentum at the time of writing. In the last 24 hours, the coin has jumped 8% trading at $22,100. Speculators believe the risk reward sentiments have again returned. The 50 Day and 100 day MA have returned back to the 2018 state, where further upside is apparent. Hence, investors want to try their luck and invest in the crypto.