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Crypto market wrap: CEL rallies with other altcoin prices

By Monte Stewart


Updated

Short Squeeze
The Celsius Network coin rose with other altcoin prices Thursday as investors appeared to gain from a short squeeze, which can be akin to sumo wrestling. - Photo: Getty Images

Celsius Network’s coin CEL rallied Thursday with other altcoin prices as a short squeeze appeared to pay off.

CEL was up about 10% during late-afternoon trading in North America’s West Coast markets, according to CoinMarketApp data.

The rise resulted as CEL investors, known as Celsians, continued to promote their short squeeze campaign on Twitter. 

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CEL to USD

Squeeze came after freeze

CEL has faced pressure since the parent network, a cryptocurrency lender, froze customer deposits and transfers due to financial difficulties early last week.

In a short squeeze, bulls try to gain the upper hand on bears by attempting to buy up the underlying asset to boost its price and make it harder for short sellers to cover their positions.

Short sellers typically bet against an asset rising. If it does, they have to short sellers have to cover their margins. If short sellers are unable to cover, they must buy the asset at a higher price. Hence, a short squeeze occurs.

CRV to USD

GameStop stock also rose

The CEL investor move is similar to a short squeeze waged by GameStop (GME) investors in January 2021 that caused the stock’s price to rise 1,000% in two weeks, Forkast reported.

ETH/USD

3,512.09 Price
-0.230% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BTC/USD

66,743.50 Price
-0.560% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

XRP/USD

0.60 Price
+4.850% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

SOL/USD

171.52 Price
+0.010% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

The short squeeze began earlier in the week, according to Forkast, and CEL’s price jumped on Tuesday. But it plunged Wednesday along with market leader bitcoin (BTC) and other cryptocurrencies.  But CEL managed to rally on Thursday as other altcoin prices also surged, continuing a week that has featured considerable volatility.

RUNE to USD

Polygon soars

Polygon (MATIC) soared 22% before receding slightly, while thor chain (RUNE) was up about 21% and cosmos (ATOM), avalanche (AVAX) and the Curve DAO’s token (CRV) also posted double-digit percentage gains.

Celsians appear determined

If Twitter posts are any indication, Celsians appear determined to keep squeezing CEL short sellers.

‘It didn’t die’

"We break $1 again in the next 12 hours! I don’t make the rules.,“ tweeted a Twitter user with the handle Garry the Elrond Apes Guy, predicting that the next pump would see CEL’s price rise to $3.

“They tried to kill [CEL] but it didn’t die,” added another Twitter user, who identified himself as Jono Spears, in a separate tweet.

Another user, known as Ace, predicted that celsians will “come out on top” regardless of “how things end” with the Celsius Network.

Markets in this article

CRV/USD
CRV/USD
0.3100 USD
0.0043 +1.480%
GME
GameStop Corp (Extended Hours)
25.06 USD
-1.14 -4.370%
RUNE/USD
RUNE/USD
4.7259 USD
0.0846 +1.830%
ATOM/USD
ATOM/USD
6.7842 USD
0.0383 +0.590%
AVAX/USD
Avalanche / USD
28.8043 USD
-0.0598 -0.210%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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