ETH and BTC prices drop 5% after Evergrande and Kaisa crash
ETH and BTC prices fell 5% due to issues with Kaisa and Evergrande, while the rest of the stock and cryptocurrency markets fell, so let’s find out more in today’s Bitcoin news.
When investors did better, the cryptocurrency market recovered faster than home sales in China. According to Coingecko, ETH and BTC prices fell 5% on the previous day as the total crypto market capitalization lost 6% of its value. Share prices fell after Chinese developers Kaisa and Evergrande were unable to make scheduled payments on their British dollar bonds.
Bitcoin had a slow December as the crypto asset by market cap at the beginning of the month topped the $ 57,000 mark but then dropped below $ 48,000, and it’s a similar story for most coins. Ethereum has grown from $ 4,700 to less than $ 4,200, and the total crypto market capitalization has lost $ 250 billion since the beginning of the month. Most of the losses occurred on Friday, when the price of BTC fell 17% in a matter of hours. Since then, he was able to grow up a little, and today he has retreated a little.
There are many reasons for the sell-off, such as liquidation of investors in the futures market, which only creates a layering effect during liquidation. These liquidations began as the cryptocurrency as a whole pushed the musical backdrop to the stock market, as happened this year when the company’s shares plunged due to Omicron issues and a change in reservation policy. This is what happened, despite the fact that the Dow Jones Industrial Average as a stock index of 30 US companies did not change, so earlier this week the NASDAQ index fell more than 1%, and the S & P500 index began a trend reversal.
The US market may respond to the problems facing China’s largest developers unable to cope with falling home sales and government restrictions on real estate. Kaisa defaulted on its $ 400 million bond, while China Evergrande Group missed its deadline for paying interest a week ago. Given the overlap in the global economy, can another financial crisis be expected? While Bitcoin has positioned itself as a hedge against inflation, the emergence of institutional investors in crypto has made the market less immune to movements in other markets.