BTC price crash incoming? Celsius Network transfers 25,000 wBTC to FTX

Crypto lending platform Celsius Network has transferred around 25,000 Wrapped Bitcoin or wBTC to the crypto exchange giant FTX. This transaction worth $528.9 million prompts concerns inside the crypto community about whether a dump might follow soon.

The significant payment to the exchange was made after Celsius Network cleared the remaining $41.2 million in Maker (MKR) protocol debt, freeing up all of the wBTC collateral for its loan.

The community is confused about how to interpret the transfer to FTX, with some people worrying that a dump of wBTC on the exchange may soon occur, driving down the Bitcoin price.

Others have expressed greater optimism that the action may be a prelude to Celsius Network exchanging their wrapped Bitcoin for BTC, which may be promising for depositors that have been anticipating the return of Bitcoin withdrawals on the Celsius platform. Bitcoin has increased by 8% in the last day to trade above $22,100, indicating that market participants are ignoring the news.

Following today’s news that 150,000 BTC could potentially be released into the market as Mt.Gox creditors finally receive their BTC after an eight-year wait, 25,000 wBTC were delivered to FTX.

No official announcement from Celsius Network

As of now, neither Celsius nor its CEO Alex Mashinsky have made any public announcements on the movement of funds. Crypto lawyer Joni Pirovich said that the company’s repayment of its loan position with Maker would help its customers. He stated:

“Maker protocol relies on overcollateralized loan positions, so the loan repayment of US$41 million worth of DAI released 21,962 WBTC of capital which is now available to meet customer withdrawal requests.”

Notably, on June 12, the lending platform halted withdrawals on its platform, amid the crypto market’s downturn. Soon after the announcement, Celsius Network hired restructuring lawyers and later laid off 150 employees, decongesting its liabilities.