TechFlow News — Recently, Southern District of New York Bankruptcy Judge Martin Glenn has approved Celsius' request to sell or exchange any altcoins into BTC and ETH starting July 1.
Research firm Kaiko stated that if the bankrupted crypto lending firm Celsius sells or converts its reserve assets into BTC and ETH, the digital asset markets could face "significant" pressure.
As of June 30, Celsius held approximately $600 million worth of cryptocurrencies, with its largest positions being around $300 million in BTC and $117 million in ETH. It also holds about $180 million in various small-cap tokens, including $100 million in paper value of its native token CEL.
Kaiko noted that while there is no detailed information on potential trades, market impact could be substantial—especially given that liquidity for these tokens has declined over the past year. For instance, the market depth for CEL token stands at only $30,000, primarily concentrated on crypto exchanges OKX and Bybit. It is estimated that the total market depth for the altcoins held by Celsius has dropped by 40% since last year, amounting to roughly $90 million in July.
"Ultimately, due to poor liquidity conditions, Celsius’ altcoin liquidation could put short-term pressure on the crypto market," Kaiko said.
