Here’s the Evergrande connection to the latest Bitcoin (BTC) price crash

The Asian Time Bitcoin Crash came as a surprise to investors. However, the Evergrande connection makes the fall seem more predictable. It has been speculated that Chinese real estate giant Evergrande is the potential cause of the crash after being banned from the US in lieu of its $ 2 trillion debt.

The Hong Kong stock market collapsed, triggering a decline in global markets and cryptocurrencies. The main reason is Evergrande, China’s largest real estate company with nearly 2 trillion in debt. Tether has just made it clear that it doesn’t hold any commercial votes from Evergrande.

– Wu Blockchain (@WuBlockchain) September 20, 2021

Hang-Seng Index

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According to Hong Kong’s Hang Seng Index, the stock market fell 3.3% today to close at 23,099.14, which also saw a shift in bear sentiment towards crypto. In addition, Evergrande Group’s shares plunged 10.24% in Hong Kong after previously falling as much as 17%.

Chinese journalist Colin Wu tweeted about the sudden and extreme slump in the stock and crypto markets, “the biggest one-day decline in the past eight weeks. Among them, the two Evergrande bonds will herald the interest payment date on Thursday, and the stock price has fallen nearly 19% during intraday trading, hitting a new low since June 2010. “

2008 crash

The 2021 stock market crash due to the real estate industry could be compared to the stock market and real estate crash of 2008 due to the abnormal growth of the subprime mortgage market from 1999 onwards. In addition, it has been speculated that the 2008 crash was the reason for Satoshi’s Bitcoin innovation.

Crypto bear

September 2021 was a historic bear month for crypto. While Bitcoin fell into the 44,000-45,000 price bracket, many other cryptocurrencies and exchanges faced regulatory anger. Following the Chinese crackdown on cryptocurrencies, regulators around the world actively began shutting down unregistered crypto companies and enforced several restrictions on the industry.

The US saw the controversial crypto clause of the bipartisan infrastructure law. Since the clause became public, the clause has been heavily criticized not only by citizens, but also by members of the Senate Finance Committee and Republicans. The $ 1.2 trillion crypto clause in the U.S. Infrastructure Act is set to radically raise crypto tax and raise nearly $ 28 billion from cryptocurrency tax enforcement measures.

Disclaimer of liability

The content presented may contain the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.

About the author

Journalism & Mass Comm. Palak is a ’21 graduate GenZ journalist with a background in lifestyle journalism and PR. At CoinGape, Palak is a junior crypto journalist preparing for Web 3.0

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