has fallen by more than 16% for the beginning of the week and dropped from $ 47,500 to $ 40,000. Most old coins had to accept even greater losses. The aggressive sale on the cryptocurrency market resulted from the general weakening of the market mood in Evergrande (OTC :).
We talk about the situation with one of the largest Chinese real estate developers - the China Evergrand Group, which was about to default and collapsed with the weight of around $ 300 billion (we remember Lehman Brothers). Some investors fear that the failure of Evergrand's default could trigger a chain reaction if other companies will be in financial difficulties and their debts will not pay.
Fears that the global economy could be in the middle of a further global financial crisis, comparable to the crisis of 2008, forced the dealers to reduce their capital in favor of defensive investments such as gold and US state bonds. It is worth noting that the potential failure of Evergranden could have a negative impact on the Tether Stage Cooin, which plays an important role in the cryptocurrency ecosystem.
before had {{| tether}} Holdings Ltd. stated that about half of his assets are securities and commercial paper. Since the management of the company decided not to disclose the details of the company investment portfolio, retailers assumed that Evergrande could hold part of the Tether Holdings Ltd. Reserves in its commercial paper. If the China Evergrand Group cannot avoid a default, this will have a domino effect in China's real estate sector.
rejuvenating fears conquer the crypto industry
The expectations of an impending monetary policy tightening in the United States put the crypto industry under pressure. As soon as the US regulatory authority decides its quantitative loosening program, this could have long-term negative consequences for those who are still one of the leading indicators for the risk of risk.
It is worth noting that the scenario in which the Federal Reserve begins to gradually slow down its securities purchases, is quite possible and could start this year. Against this background, the latest BTC reaction to the Evergrand crisis indicates that the panic-driven sell-out on the financial market could definitely be repeated, which could lead to another exodus of investors from digital currencies and a relocation to safer assets. For this reason, we recommend shortening BTC with a target of $ 30,000, which could be found in the coming weeks.
