Celsius, a bankrupt lender, is planning to liquidate its altcoins for Bitcoin (BTC) and Ethereum (ETH), which could potentially add pressure to the overall crypto market, according to a report by blockchain analytical firm Kaiko. Over the past year, most of the altcoins held by Celsius have experienced significant drops in liquidity, ranging from 6% to as high as 84%. Kaiko's data shows that Celsius' altcoin holdings have seen a decline of 40% since 2022, amounting to approximately $90 million in early July. The liquidity situation for altcoins held by Celsius has not been favorable, with only Litecoin (LTC), Bitcoin Cash (BCH), Polygon (MATIC), and Aave (AAVE) experiencing notable changes in their liquidity over the past year. Other altcoins mostly faced a decline. Notably, BCH and LTC witnessed an improvement in their liquidity after EDX, a crypto exchange supported by traditional financial institutions, introduced support in June. Celsius currently holds over $90 million worth of altcoins, which poses a challenge for the company as liquidating them without incurring high price slippage becomes difficult. Kaiko also highlighted that more than 60% of the altcoin market depth is concentrated on offshore exchanges like Binance, while around 30% is on U.S. exchanges. A significant concern for Celsius is the lack of liquidity for its main altcoin holding, CEL. The native token of Celsius represents nearly 65% of the bankrupt company's total altcoin holdings. Market depth for CEL has virtually collapsed, with only $30,000 in liquidity, primarily concentrated on OKX and Bybit. Celsius's plan to liquidate altcoins for BTC and ETH, coupled with the decline in altcoin liquidity and the lack of liquidity for CEL, raises concerns for the broader crypto market. The potential selling pressure from Celsius's liquidation could have implications for market stability and the prices of altcoins. Investors and industry observers will closely monitor the situation as it unfolds. Overall, Celsius's bankruptcy-induced liquidation plans and the related challenges highlight the intricacies and potential impacts within the crypto market.