The market value of cryptocurrencies fell to a low of $ 1.7 trillion as of 5:14 a.m. IST Wednesday, from $ 2.12 trillion as of 2:44 a.m. IST on Monday, down 16.5% in 48 hours , resulting in a loss of more than $ 350 billion, according to data from crypto portal CoinMarketCap. In tallying the price losses, Bitcoin saw its price drop 15% from $ 47,211 to $ 39,876 over the said duration, while Ethereum slipped nearly 18% from $ 3,325. at $ 2,730. Even Solana, which recently attracted great investor interest, fell 19% from $ 152 to $ 122. Experts point to the impact of the current Evergrande crisis in China.
“The market rocked when the rest of the world realized the failure of the Evergrande real estate group, which led to a massive sell-off. This was seen by many as a Lehman Brothers crisis that sparked the 2008 recession. The price drop on various major cryptos was over 6%, but given that the crypto is hedging due to its Global market nature, the price decline that has occurred because of this is expected to recover quickly, ”Sathvik Vishwanath, co-founder and CEO, Unocoin told UK Time News Online.
The decline followed the action in global markets. Evergrande default fears triggered volatility in Asian stocks and UK energy prices, putting the majority of energy providers at risk of insolvency while Wall Street has seen equally worrying drops as the S&P fell 1.7% on Monday, its worst trading day since May, Freddie Evans, a seller of digital asset broker GlobalBlock said in a note on Tuesday. “Fears of a global economic correction have intensified over the past few months, and perhaps Evergrande could be the catalyst… As expected, crypto has been tracking global markets,” Evans said.
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“Some have attributed the sudden drop (in Bitcoin) to the current situation of Evergrande in China, which has already caused turmoil in traditional markets,” GlobalBlock’s Jonas Luethy said Monday. The crypto market cap on Thursday night had slipped back to $ 1.98 trillion with Bitcoin’s share of nearly 42% at $ 44,041, at the time of this report’s filing, while Ethereum has recovered to $ 3,113. and Solana at $ 148. Evergrade, one of China’s largest real estate developers, has drawn the attention of global regulations as its massive debt burden of over $ 300 billion could impact global markets and economies.
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