Bitcoin Bounces Off $ 40,000 After China Evergrande Panic Crash

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Last night, bitcoin fell to $ 40,200 due to panic around the Chinese developer China Evergrande, which is on the verge of default. In the morning, the market bounced up, trying to “take revenge”.

Debt problems in China Evergrande, which are likely to lead to bankruptcy of the company, have caused panic among investors. Many experts suggest that not only China, but the entire world economy will suffer from this. Increasingly, analogies are drawn between the situation in the Chinese real estate market and the 2008 crisis, which began with the collapse of mortgage companies.

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The fall in the stock market, including the decline in the shares of more than 80% of the companies that make up the S & P500 index, negatively affected the cryptocurrency market. On September 18, Bitcoin traded above $ 48,800, but on September 20, BTC fell to $ 42,600, and then continued to fall, pushing off from $ 40,200. All major cryptocurrencies followed suit. The entire market suffered serious losses.

At local minimums, ETH fell to $ 2800, ADA fell to $ 1.97, BNB – to $ 344, DOT fell to $ 26.42, and SOL – to $ 125.2. Despite the worrying sentiment of investors, today bitcoin has risen above $ 43,500, deciding to win back losses. Altcoins also begin to recover within 10%. But the recovery growth remains unstable, as the main reason for the decline has not been eliminated.

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OANDA Senior Analyst Edward Moya is not surprised by Bitcoin’s recent plunge. He
said on CNN that the consequences of a possible bankruptcy of Evergrande could deal a colossal blow to all high-risk assets, including crypto assets. However, Moya noted that cryptocurrencies have performed well this year thanks to the interest of institutional investors, despite the high volatility.

Many experts are confident in the optimistic future of bitcoin. Among them is Mike McGlone, senior commodity strategist at Bloomberg. He recently suggested that over time, Bitcoin will rise to $ 100,000 as it turns into an international reserve asset. Ark Investment Management CEO Catherine Wood believes that Bitcoin is “threatened” with a rise to $ 500,000.

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