Celsius, the bankrupt crypto lender, has received court approval to convert its altcoin holdings as part of its restructuring plan. The majority of these altcoins have experienced a significant drop in price, with more than a 60% decrease observed. According to analytics platform Kaiko, Celsius will be converting its altcoin holdings into Bitcoin (BTC) and Ethereum (ETH). To facilitate this process, the company has moved some of its holdings to market maker Wintermute and stablecoin issuer Paxos. However, the exact valuation of Celsius' holdings in terms of USD remains unclear. The lack of information regarding buying and selling rates raises concerns about potential market impact, especially considering the decrease in liquidity for these tokens over the past year. The aggregated market depth for Celsius' altcoin holdings has decreased by 40% since 2022, amounting to approximately $90 million as of early July. Court documents indicate that Celsius holds altcoins valued significantly higher than $90 million, making the liquidation process challenging without experiencing substantial price slippage. One particular challenge is the CEL token, which suffers from extremely limited liquidity, with a market depth of just $20K primarily concentrated on OKX and Bybit. Due to the poor liquidity conditions, the liquidation of Celsius' altcoins has the potential to exert short-term pressure on the cryptocurrency markets. Over the past 24 hours, the price of CEL has increased by over 4%, trading at $0.1578 according to CoinMarketCap. This places CEL closer to its daily high of $0.1611 than its 24-hour low of $0.1516. Notably, CEL has experienced a significant decline since reaching its all-time high of $8.02 in June 2021, with the price slipping by more than 98%. It is important to note that the restructuring and conversion of Celsius' altcoin holdings could have implications for the crypto market. The limited liquidity and potential market impact should be closely monitored by traders and investors.