The Wall Street journal is reporting that Celcius Network investors are NOT likely to provide more funds to bail out the crypto lender. Last year a private equity firm along with a Canadian pension fund invested $750 million and Celsius valuing the crypto startup at more than $3 billion. They are not looking to invest anymore with one saying:
- “Few are feeling OK about things,”
- “There was more risk in this than fully appreciated,”
Recall from over the weekend, Celsius Network shut down redemptions from its crypto lending facility. The company takes various crypto currency deposits and lends them to other users to earn a "risk free" return. The risk is in the payments from those who the cryptocurrencies were lent. Despite the $750 million infusion of capital, the company is having trouble meeting its obligations from customer redemptions.
That is trouble.
Looking at the weekly chart of bitcoin , like the NASDAQ index, it is trading below its 200 week moving average at 22357.95. The current price is trading at $21,151. That's down $580 or -2.67% on the day.
The last time the price traded below its 200 week moving average is back during the weeks of March 9 and March 16, 2020 at the start of the Covid pandemic/lockdown. However a week later, the price was back above the key 200 week MA level. That ultimately led to an incredible 1692% gain to the November 2021 highs.
Since then, the price has seen a 69.3% haircut from the high. The move down has moved $47830 from the high to near the current level. All HODL traders who got in Bitcoin in December 2020, are now in the red.