Ever heard of WallStreetBets? This activist Reddit forum was in the news a lot in early 2021, in particular. It caused great panic among a number of hedge funds, as a result of which a number of shares have unexpectedly risen enormously. Something similar seems to be happening now, but with the token from crypto bank Celsius.
short squeeze for Celsius
Celsius went bankrupt in May because it fell too hard in the value of its investments relative to customer deposits. dat had disastrous consequences for the company’s CEL token. But it never went all the way to zero, and crypto investors took advantage of that.
ssome investors thought the token would go to zero precisely because the company is bankrupt. That is obvious, of course, and that’s why they went short. If you go short, you make a profit if the value of the investment falls, because you borrow the investment and then ‘sell’ it. After the bankruptcy, apparently many people were short on CEL.
But fans of the platform have massively bought the CEL coin precisely because of these shorts. After the bottom on June 13, the token has risen between 20 and 40 times, depending on which exchange you are looking at. Shorters have therefore been forced somewhere along the way to buy back more expensive. That buyback leads to even more demand, which pushes the price even further.
At the time of writing, CEL is in a parabolic uptrend and is just under 4 USD. We must emphasize that it is rarely wise to buy when an investment looks parabolic.
Ripple may be interested in Celsius
Last week it emerged that crypto giant Ripple is interested in an acquisition of Celsius. That could be related to the assets Celsius has left.
There is no response from either Ripple or Celsius yet, so for now it is just a rumor. Still, the news comes from Reuters, which is usually very well-informed. This news could have helped with the hard price hike.
