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The global crypto market is highly aware of the Bitcoin crypto crash hitting the lowest US$20k recently. One of the key reasons behind this crypto crash was Celsius Network. The Celsius Network cryptocurrency platform suddenly froze the withdrawal power of crypto investors in the bearish crypto market. The crypto company has apparently stumbled on the investment of Celsius stock. Thus, Goldman Sachs has decided to put a US$2 billion deal for asset purchase from Celsius Network to prevent bankruptcy.
Goldman Sachs is set to seek US$2 billion from financial as well as crypto investors to invest in assets of Celsius Network with sharp discounts, at a very low price, with a condition— in the event of the bankruptcy filing. It has an immense interest in Celsius stock since the crypto lender is going through a distressing situation in the highly volatile crypto market. It has announced to freeze all withdrawals and transfers of crypto investors for extreme market conditions and this led to the Bitcoin crash in June 2022.
Celsius Network has started hiring restructuring consultants from Alvarez & Marsal for the appropriate advice on potential bankruptcy filing in the crypto market. It shows that the financial market is sliding down with the global crypto market as well. Thus, Goldman Sachs is ready to buy Celsius stock that had over US$8 billion in cash on hand with more than US$12 billion in digital assets in May 2022. The existing extreme market conditions include high-interest hikes from the US Federal, high inflation, and a looming recession.
Goldman Sachs is waiting for the official declaration announcement from Celsius Network to create an opportunity for crypto investors to invest in Celsius stock at a huge discounted price. Celsius Network has ensured a high annual interest rate of 18.6% in the crypto market for crypto investors to manage cryptocurrency deposits and then create opportunities for crypto loans. Goldman Sachs has considered multiple crypto companies, traditional financial institutions, restructuring companies, as well as Web3 firms to collect US$2 billion for Celsius stock.
Bitcoin dropped its price for crypto investors to 14% as a consequence of the freezing announcement from Celsius Network as a ripple effect in the crypto market. The crypto lender has announced that the decision will be for an indefinite period till it takes to stabilize liquidity and operations for the protection of assets for crypto investors. Crypto investors need to wait for the bankruptcy announcement for the move from Goldman Sachs to offer discounted Celsius stock to drive profit in the crypto market.
