Celsius Network’s Altcoin Sell-Off: How Will Altcoin Market React on July 1st?

In recent news, Celsius Network, a cryptocurrency lender, has managed to shock the crypto community with a new announcement.

The company plans to sell off customers’ altcoins as part of a reorganization strategy. This move has raised concerns and speculations about the market implications, particularly for Celsius (CEL), Polygon (MATIC), and Cardano (ADA). 

How will this impact you? Coinpedia has covered all the details that you need to be aware of. Read on. 

Celsius Network’s Altcoin Liquidation

According to recent reports, starting from July 1, 2023, Celsius Network will be liquidating customers’ altcoin holdings, excluding custody and withhold accounts. The proceeds from the sale will be converted into Bitcoin (BTC) and Ethereum (ETH). 

This decision has left investors and enthusiasts curious about the fate of their altcoin investments.

Interestingly, Celsius Network holds a substantial amount of Celsius (CEL) tokens, valued at approximately $70.5 million. As one of the most significant altcoins in Celsius Network’s portfolio, the selling pressure on CEL raises questions about its future price trajectory. Investors closely watch how this liquidation will impact the value and overall sentiment surrounding CEL. 

Polygon (MATIC) Faces The Heat

Another altcoin in the spotlight is Polygon (MATIC). Celsius Network holds around $51.8 million worth of MATIC tokens, which have experienced a decline of over 25% in the past week. With Celsius Network’s decision to sell off altcoins, MATIC’s price and market sentiment hangs in the balance too. 

Concerns For Cardano (ADA) Rise

However, Cardano (ADA), a prominent altcoin, is also affected by Celsius Network’s liquidation plan. With Celsius holding approximately $26.2 million worth of ADA tokens, the market anxiously anticipates the impact on ADA’s value. Recently, ADA faced a decline of over 17% due to regulatory concerns, adding an additional layer of uncertainty to its future prospects. 

Broader Market Impact

Beyond CEL, MATIC, and ADA, Celsius Network’s altcoin liquidation plan has raised broader market concerns. 

Also Read: Altcoin Crash Could Be Imminent: Cardano (ADA), Polygon (MATIC), and Chainlink (LINK) In Danger – Coinpedia Fintech News

Other notable altcoins held by the lender, including Chainlink (LINK), Litecoin (LTC), Polkadot (DOT), Bitcoin Cash (BCH), Aave (AAVE), and BNB, also face potential selling pressure. The market closely observes the outcomes of these sell-offs, as they could influence the prices and sentiment surrounding these altcoins.

Notably, Celsius Network’s altcoin liquidation plan has generated significant interest among investors and enthusiasts. However, the growing selling pressure on CEL, MATIC, and ADA, along with other altcoins held by Celsius Network, has heightened market uncertainty. 

The outcomes of these sell-offs will not only impact the specific altcoins’ prices but may also influence investor sentiment and confidence in the wider cryptocurrency market.

It’s advised to make trading and investing decisions with utmost clarity and only after conducting thorough research.