Celsius lending platform has lowered their liquidation price to $12,243 as of July 1st, on WBTC-A vault 25977, now a low risk position.
Celsius previously lowered that BTC liquidation threshold from $14k to $13.6 last month, and now have reduced it a further 10%, also paying down debt on a $LINK Maker position they had open.
Investors reacted positively to the news as if Celsius were to be liquidated on their 23,963 Bitcoin position (worth approximately $463 million) the forced selling as result could cause a flash crash in the Bitcoin price to much lower levels if enough bids from buyers can’t be filled.
Celsius Liquidation Price on stETH
According to DeFi analyst DeFiyst on Twitter (@DeFiyst), Celsius’ stETH (staked Ethereum) AAVE wallet has a liquidation price of $497, which he also rates low risk (unrealistic to be hit).
Celsius’ stETH Aave wallet is still the largest position by notional size (excl. illiquidity discount). Debt has been paid down on this position also.
Health factor now 2.05 (assuming Beta of 1 and no illiquidity discount, their liquidation price is $497 per stETH) [Unrealistic] pic.twitter.com/y61XbpkLgk
— DeFiyst (@DeFiyst) July 1, 2022
The work Celsius are doing to unwind their BTC, ETH and other altcoin positions and restructure their liabilities could improve investor confidence in the crypto markets and be a bullish signal.
Will Celsius Recover?
Celsius Network have hired restructuring consultants from advisory firm Alvarez & Marsal to consider bankruptcy filing options, as well as attorneys from law firm Akin Gump Strauss Hauer & Feld LLP.
They also posted on the Celsius blog that the company has sought advice from banking giant Citigroup on potential financing possibilities.
However BTC is currently red on the weekly, trading close to $19,000 after news of FTX backing out of a deal to buy the Celsius platform – having found a $2 billion hole in Celsius’ balance sheet.
On their website Celsius mention Nexo have also made an acquisition offer however, and posted on Twitter that they are ‘working around the clock’ for the Celsius community.
Celsius Crypto Token
The Celsius (CEL) token price is also up 22% in the past 24 hours, reacting well to Celsius being in a safer position and less at risk of liquidation.
‘Celsius Short Squeeze’ and the #CELshortsqueeze Twitter hashtag has been trending in recent weeks as some Reddit traders on the Wall Street Bets forum attempted to squeeze shorts by buying CEL to help the company recover, similar to the AMC and Gamestop short squeeze of January 2021.
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