April 17, 2024

Celsius (CEL) has been on the headlines recently in line with hearing updates following its filing of bankruptcy and sale of stablecoins.

  • CEL price spikes 30% as seen in the past 24 hours
  • Price slumps 13.21% despite improvement in social media metrics
  • ETH Merge to impact CEL performance

Celsius Network has recently filed for bankruptcy in July and is now in Chapter 11 proceedings. More so, the network has also requested for court authorization on its plans to dispose its stablecoins to pump up liquidity needed for its operations.

Once this is approved by Martin Glenn, the U.S. presiding judge, the money pooled from the sale of stablecoins would serve as funding for Celsius operations.

The said hearing on the sale of stablecoins is set on October 6 in New York.

Agreement To Appoint An Independent Examiner

In September, The U.S. Trustee’s office together with Celsius’ committee consisting of creditors made an agreement to assign an independent examiner with the condition that they will restrict both the funding and time allotted to the examiner.

More so, the United States Trustee’s Office will be in charge of choosing the examiner. The judge has approved this on Wednesday.

In this connection, Celsius has recently posted a tweet on September 15 harping on their willingness to continue working with the U.S. Trustee and Unsecured Creditors Committee as well as their commitment to improve network efficiency in order to serve their customers better.

CEL Price Down 13.21% Despite Increase In Metrics

Triggered by the recent developments and hearing events, CEL price is observed to have spiked by 30% as seen in the past 24 hours. More so, CEL social media metrics has also accelerated.

Social media engagement also peaked at 1.2 billion showing a remarkable growth of 32.26%. 

Despite the boost in social media engagement as well as a price rally, there are still some nagging issues surrounding CEL that make investors apprehensive about the altcoin.

According to CoinMarketCap, CEL price has nosedived by 13.21% or trading at $1.70 as of this writing. 

The total market cap of CEL has slumped by 36.21% as seen in August. More so, market dominance also declined by as much as 41.25%. Uncertainty is creeping on the token, and investors are being extra cautious in making any move due to its high volatility.

The Ethereum merge also has a great impact on CEL performance. In fact, Celsius has posted a tweet stating that they are tracking the merge.

Investors also look at the short-squeeze movement as a warning because history shows that this movement can negatively impact investor portfolios.

Crypto total market cap at $927 trillion on the daily chart | Source: TradingView.com

Featured image from LedgerInsights, Chart: TradingView.com

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