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.