Crypto Faces Evergrande Heat, Down To $43k Level

FILE PHOTO: Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on PC motherboard in this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/Illustration

After the stock market, now the crypto market is facing the Evergrande heat, as Bitcoin went down to 43k level.

20% Fall in Stocks Likely

The situation started worsening after Evergrande stocks fell by 15%, owing to investors uncertainty over the non-payment of debt. The financial world reacted fast to the Evergrande sell-off, with the stock market going down, followed by cryptocurrency. A Bloomberg article quoted Morgan Stanley’s Wilson predicting a 20% downfall of the US Stocks as the Evergrande crisis deepens.

Crypto Falls by 10%

In the last 24 hours, the world’s most popular digital currency, Bitcoin, fell by -2.68%. In the previous week, Bitcoin went down by -8.29%. Today, at one point, the loss amounted to -12%. Other cryptocurrencies like Cardano, Dogecoin faced a similar fate with more than a 10% fall. This shows the mood of the market, where the collapse of Evergrande rattled everyone.

The Evergrande Situation

Being the second-largest property developer of China, Evergrande’s inability to pay the loans and its subsequent collapse has made investors jittery. The company has $300 billion in liabilities and $32 billion in assets. They are at risk of defaulting with 10% of their liabilities in hand. That’s a highly uncertain future. They tried to sell off some assets to pay the debts.

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