As Evergrande worried about sweeping the market, Bitcoin fell below $43,000 | Crypto News

If Chinese real estate developer Evergrande sees a messy debt default, Bitcoin will fall into broader market concerns.

As concerns about the spread of China’s Evergrande Group swept the global market and triggered widespread selling, cryptocurrency prices plummeted.

Bitcoin fell 10.7% to $42,522 during New York trading hours, its lowest level since early August. This point is also lower than the low of September 7, when Eracoin fell by 17% in less than an hour. Other digital assets also fell, with Bitcoin Cash, EOS and Ethereum all falling.

As investors weighed Evergrande’s debt dilemma and the risks brought by the Fed meeting this week, these losses reflect the trend of the broader market. US stock index futures dropped at the start of trading, and the Stoxx Europe 600 Index fell 2%, which is expected to hit its biggest decline since July.

According to data from the crypto futures trading and information platform Bybt, as the accounts of more than 249,000 traders have been liquidated in the past 24 hours, which is equivalent to about 1.23 billion U.S. dollars worth of cryptocurrency, the speed of the plunge may accelerate.

Jonas Luethy, a sales trader at GlobalBlock, a British digital asset broker, wrote: “Some people attribute the sudden drop to the ongoing Evergrande situation in China, which has caused turmoil in the traditional market.” “Analysts said that the next week will be a turbulent week, and it may fall back to a low of $41,000.”

Although Bitcoin does not always trade in sync with the financial markets—this feature makes it an attractive proposal from the perspective of portfolio diversification—but since February, it has been in line with the Nasdaq 100 The 30-day correlation of index futures has been positive last year. A reading of 0.5-close to the present-means they often move in the same direction these days.

Investors say that while the connection with technology stocks makes sense—the two types of investments may be considered attractive to the same tech-savvy investor group—small-cap stocks and the S&P 500 index also perform A strong correlation. This may be because as Bitcoin becomes more integrated into global financial markets, it should respond more to changes in risk appetite that drive global sentiment.

At the same time, El Salvador’s President Nayib Bukele stated that the country has “buy” Bitcoin on dips, adding 150 tokens and increasing its total holdings to 700 – Based on the current price, it is approximately US$32 million. The country recently adopted Bitcoin as legal tender in a controversial move, but encountered technical glitches and protests.

We just bought the dipping sauce.

150 new coins!

El Salvador now has 700 coins.#Bitcoin🇸🇻

-Nayib Bukele 🇸🇻 (@nayibbukele) September 20, 2021

El Salvador’s enthusiastic adoption of Bitcoin is one of the reasons why prices have been rising and recently hit a four-month high. Nevertheless, the market still has some way to go before it can recover the losses since the May sell-off.

“On days like today, you have a perfect storm, I think people will ask,’What can I sell the fastest? Prosper Trading Academy CEO Scott Bauer said, I’m What can you visit at 2am? “If they hold cryptocurrency, this is obviously an all-weather market, maybe this is where they pay attention first,” he said, adding that the news from China is negative for the cryptocurrency field .

– With the assistance of Eric Lam and Lynn Thomasson.