Bitcoin & Crypto Market Survives Supply Survive As Celsius Refund Distribution Cools

• Celsius confirmed it had settled about 251,000 of its 372,000 creditors for more than $2.5 billion.
• The remaining 121,000 creditors may not be willing to redeem their money because most of their funds are under $100.
• Bitcoin and the crypto market has been able to survive various supply gluts including Mt Gox, the German government and Celsius.

Celsius, a defunct crypto lending company, has repaid more than half of its lenders, according to a filing on Monday. The $2.5 billion distribution had limited impact on the price of Bitcoin, which has seen price fluctuations in the past during creditor repayments.

Crypto market rocked by Celsius refund distribution

Celsius, the defunct crypto lender, successfully distributed more than $2.5 billion in repayment to its creditors, according to a court filing on Monday. The filing showed that 251,000 creditors claimed the $2.5 billion distribution, representing more than 93 percent of the $3 billion in total assets the company owes 372,000 customers after its 2022 collapse.

In January, Celsius began the distribution process, taking payments through Coinbase, PayPal and cash transfers. However, more than 121,000 creditors have yet to claim their repayments due to complications in getting repayment, including claims of “disinterest” among some.

According to the company, about 64,000 of these 121,000 lenders hold less than $100 worth of crypto, and another 41,000 hold between $100 and $1,000 in various crypto assets.

“Given the small amounts at issue for many of these creditors, they may not have the incentive to take the necessary steps to successfully claim a distribution,” the firm said in the filing.

The firm says it will retry the distribution process again every two weeks to these lenders through Coinbase, with refundable PayPal claim codes available at any time. According to data from Arkham Intelligence, Celsius currently holds only $5 million in on-chain cryptocurrency.

Meanwhile, the crypto market seems unfazed by recent ongoing distributions as asset prices have yet to experience sharp declines. This reverses historical records of supply gluts causing massive FUD (Fear, Uncertainty and Doubt) among investors and ultimately causing a sell-off.

In addition to the excess Celsius supply, the crypto market has been able to survive heavy selling pressure from distributions Mt. Gox and the German government’s BTC sale over the past two months.

According to Glassnode data, most long-term Bitcoin holders have remained resilient to volatility, holding on to their tokens despite the supply glut in recent months. A similar trend is also visible in the high negative net Bitcoin exchange flows in recent months, according to CryptoQuant data. Negative net exchange flows suggest that investors are either buying more tokens or moving their assets to private wallets for long-term holding.