Bitcoin, Etherum, and Dogecoin have fallen drastically.
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.
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.