Bitcoin Recovery Wades Off Celsius Liquidation, But For How Long?

The price of bitcoin has made a remarkable recovery above $20,000 after a brutal week riddled with crashes. These dips had driven decentralized finance (DeF)/ lending protocol Celsius, to the brink of liquidation. However, as the price has recovered, the platform is once again able to hold out for longer as its liquidation point is now a bit further away. The question remains if the recovery will hold and if Celsius will be able to avoid liquidation. Liquidation Price Pushed Back With the price of bitcoin above $20,000, the liquidation price of Celsius is now a little bit distant. This has not changed the sentiment around the lending protocol though, which has now suspended withdrawals for 7 days at this point. Its liquidation price still remains firmly at $14,000 but the company has assured the community that it continues to work to rectify the issues. Celsius had first announced the transfer and withdrawal freeze last Monday citing unstable market conditions as the reason behind the move. Even with the recent recovery, the lending protocol remains at risk of liquidation, and as such withdrawals and transfers remain frozen. Related Reading | Bitcoin Funding Rates Remain Negative But Open Interest Tells Another Story In its most recent communique with the public, Celsius has said that it is working with officials to find a suitable resolution to its issues. “As has been a priority since our company’s inception, we maintai...