On June 14, discussions of Celsius continued to populate media headlines and June 14's news involved the platform's CEL token accruing massive gains after what appears to have been either an exchange glitch or a short-squeeze. CEL price spiked from $0.18 to $1.55 in one abrupt candle before sinking back to $0.60 within the same one-hour candle.CEL/USDT 1-day chart. Source: TradingView
Currently, analysts are on the fence about the reason for the explosive price breakout. Some cite Celsius repaying a portion of its debts as a reason, while others pinpoint a possible error on the FTX exchange as the reason for what appears to be a short squeeze.
Are debt repayments boosting investor confidence?
Celsius has been scrambling to cover a number of its debts and it is possible that some investors view this as a sign that the platform will be able to survive the current mayhem.
Twitter analyst Hsaka said that on-chain data shows that the $28 million in Dai (DAI) that was recently deposited into a wallet controlled by Celsius and has since been sent to a separate address, which he identified as a debt repayment address.Celsius wallet transactions. Source: Twitter
Analysts believe that the Celsius's strategy is to lower its liquidation price in the MakerDAO vaults where it holds funds and ultimately avoid insolvency.