The digital currency has fell 5.7% in the past 24 hours and traded at $ 42,955 per coin at 2:43 a.m. ET on Tuesday, according to cryptocurrency tracker Coindesk.
Previously it was even 12% less.
Other cryptocurrencies are also crashing. Ethereum and Dogecoin are down 4.4% and about, respectively 6% or in the last 24 hours.
The decline followed a sharp fall in US stocks on Monday as Wall Street fears turned to China. Investors were concerned about the deepening crisis in Evergrande, a giant Chinese real estate conglomerate threatened with bankruptcy. It was the worst performance for them since May S&P (SPX) and the Nasdaq (COMP), while Dow (UNDUE) recorded its worst day since July. Experts have called Evergrande’s struggles a great test for Beijing, with some worrying whether the company is at risk of creating China’s Lehman Brothers moment. While other analysts said it was far from certain that the Evergrande crisis will turn out to be a similarly far-reaching event, the crisis has sparked shock waves around the world. The real estate company, struggling to cope with its $ 300 billion mountain of debt, was due to pay interest on some of its bank loans on Monday, according to Bloomberg. Evergrande did not respond to a request from CNN Business for comment on these payments. Interest on two of its bonds, valued at more than $ 100 million, will also be due later this week, according to Refinitiv. Evergrande’s shares fell 5.7% in Hong Kong on Tuesday, prolonging Monday’s losses.
Even if the company mainly serves mainland China, Investors around the world are concerned. The massive borrowing by Chinese companies has long been seen as an imminent threat to market stability. Now investors fear the banks’ exposure to Evergrande and similar companies.
US banks fell with on Monday Goldman Sach (GS) and JPMorgan (JPM) among the worst performers on the Dow.
The issue had weighed on Hong Kong markets earlier in the day when Chinese banks, insurance companies and other real estate companies were slammed.
Edward Moya, senior market analyst for America at Oanda, said on Monday that bitcoin was no different from any other asset.
“The consequences of Evergrande have weakened the willingness to take risks enormously, which pushes everything down,” he wrote in a message to his customers.
Moya noted that cryptocurrencies had performed well this year “despite all the volatility”.
“So it should come as no surprise to Wall Street that they are the first asset to be sold at the start of the China-driven market sell-off,” as investors aim to make money, he added.
Others took the opportunity to double up. Nayib Bukele, the president of El Salvador known for his bullish stance on Bitcoin, tweeted Monday that “we just bought the dip”.
The country bought 150 bitcoins and now holds 700 coins, he added.
Earlier this month, Bukele announced that El Salvador was the first country in the world to adopt digital currency as legal tender.
—— Anneken Tappe and Laura He contributed to this report.
source https://www.bisayanews.com/2021/09/21/bitcoin-falls-as-crypto-gets-caught-up-in-evergrande-selloff/
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