Crypto Crash Amid China’s Evergrande Crisis

Bitcoin, Etherum, and Dogecoin have fallen drastically.

Еvergrande Collapse

Evergrande is China’s second-largest property developer. It has been having trouble paying its suppliers and at this point owes them the staggering $300 billion.

While the company has been warning its investors that there’s a crisis on the horizon, the problem seems to be affecting different parties.

If the company defaults, this will affect China’s entire economy. As a result, the global market will also suffer.

Consequently, the investors have traded their assets in other forms. This has led to market instability.

Crypto Crash

In the past 24 hours, some of the biggest cryptocurrencies saw their prices plummet.

Bitcoin’s price dropped by over 11%. It almost reached its lowest point since August this year but managed to avoid it. It is currently sitting at around $41,600.

Ether is currently just over $2,900, which marks a 12% dip. It’s the first time it is under $3,000 since this summer. 

Even Dogecoin’s price fell – it’s now near 20 cents, an obvious fall from its 70-cent high this spring.

It’s hard to pinpoint what causes crypto markets to crash, as they are a part of a decentralized system. The dip, however, seems to be in line with the Evergrande crisis.

The good news is that even now there is still a steady BTC outflow from exchanges

ABOUT AUTHOR

Devoted my whole life to words - reading, writing and trying to be original on social media. Got certified in digital marketing - still not cool enough to be an influencer. Finished a master’s degree focused in Literature, Publishing, Mass Media. Hobbies include traveling, reading and hoping that yoga will be the thing to finally teach me some patience. Would like to take over the world at some point, but that’s an optional dream. Maybe modern tech can help me do that?

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