The crypto market went on a wild trajectory for the past 24 hours, shooting highs at the end of the day on Sunday only to crash again on Monday morning. At the end of the day, prices are down almost everywhere.
Celsius network (CEL -30.75%) was the biggest move today and traded as low as $4.46 and as low as $2.70. This is a 65% gain from the low or a 39% loss from the high, depending on your reference point. ether (ETH -5.22%) has not fluctuated as much but is down 5.7% from its peak, and Solana (SOL -6.63%) is down 7.1% from today’s high.
The biggest news of the day was a filing by Celsius Network in a bankruptcy court that showed net liabilities of $6.6 billion compared to assets of $3.8 billion. There is a funding gap of $2.85 billion and 100,669 to go. was Bitcoin Deposited by investors and only 37,926 bitcoins left.
The Celsius Network token is down slightly since the company filed for bankruptcy protection, but there was more concrete news today. Without fresh capital, there’s a huge hole in the balance sheet that won’t be filled, and that seems a stretch.
Reports over the past few days have indicated that Celsius Network is up for sale, but the courts and bankruptcy creditors are all in. It’s not clear who plans to buy the company or what value it will get if customers pay back some of the frozen money.
Ethereum and Solana seem to be riding the Celsius wave today, with little news from any ecosystem. Ethereum continues to slowly move toward the merger and investors have scrambled to bullish this cryptocurrency in anticipation. Solana’s network continues to update slowly, but as with most blockchains, activity has slowed over the past few months.
The dark cloud over crypto over the past two months has resulted in the bankruptcy of some of the largest asset owners, such as Three Arrows Capital and Celsius Network. He had an immense impact on the system and this led to a collapse that has still not fully come out.
What we have learned today is more about the magnitude of the problem. Rumors have been circulating that Celsius Network’s balance sheet actually had a $2 billion to $3 billion hole in it, and that appears to be the case.
I don’t know why the markets went up after the Celsius report but today they are trading down and I think that’s natural. It could be months before creditors and investors figure out what else needs to be split, but it looks like the entire market is taking a cautious approach until we learn more.
Travis Hoium has positions in Ethereum and Solana. The Motley Fool positions and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.