The crypto market goes down again.
Greetings to all my dear readers and followers of this important community, continuing with my publications today I will share with you a news related to the decline suffered by the cryptocurrency market yesterday and is that the tension of the real estate Evergrande negatively impact the cryptocurrency market.
Many may wonder what is Evergrande? Well, Evergrande is a Chinese real estate company that contributes 2% of China's Gross Domestic Product (GDP) and is currently going through a liquidity crisis that would prevent it from being able to assume the debts it has with its creditors as a result of a loan that was due yesterday September 20, this situation is generating a great negative impact on the world economy and the cryptocurrency market does not escape from it. This Asian mega company generates some 3.8 million indirect jobs and has 200 thousand workers.
Yesterday, the Bitcoin (BTC) and other important cryptocurrencies have experienced a significant drop in their value in the market as a result of a wave of liquidations that are being generated by the fall of the Asian markets that are being affected by the crisis that is being presented by the real estate giant Evergrande. BTC fell to $42,662 which represents 10%, while Ethereum (ETH) the second most important cryptocurrency in the market retreated its value by 13% to settle at $2,940.
Source
But this market shock that occurred yesterday not only affected these two important cryptocurrencies, but also the rest of the cryptocurrencies where we can say that the market in general had a decline of 8% in its entirety, all this is originated by the Asian market that has been affected with the fall of 3, 3% of the Hang Seng index of the Hong Kong Stock Exchange, after the announcement by the Chinese authorities that the real estate giant Evergrande will not be able to pay its obligations to its creditors, the amount that this real estate company owes in the Hong Kong stock exchange is 300 billion dollars, affecting more than 250 banks and non-banks.
Again the cryptocurrency market suffers a decline and it is the second so far this month, but like any stock market these things are always prone to happen, as well as it is very likely that it will soon begin to recover again and take its positive course. That is why we must be calm and make decisions with a cool mind before making any move that may affect our investment in this wonderful world of cryptocurrencies.
Greetings @carlir, I just recently published a small analysis on the subject and no doubt these large falls are influenced by the fundamentals, however, the uptrend does not end, and we are in the presence of a bullish rebound to continue falling so we expect a couple of strong week for the bulls, Valuable contribution, greetings.
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Greetings @madridbg, certainly these crypto market price drops are very relevant, but there are always reasons behind it, it only remains to wait for the market recovery because for sure it is going to happen.
Yes, of course, it not only impacts some businesses and companies, but it also affects governments that have anchored this virtual currency.
Let's hope that in the next few days it settles down.
thank you for informing
Hello dear @joseph1956, your comment is very accurate, this market fall also affects countries that have decided to implement cryptocurrencies in their economy, such is the case of El Salvador, but probably they will recover because the statistics confirm it.
Greetings @carlir the BTC price decline coincides with many external economic factors, in addition to their respective market correction, and with this second decline in its price has already reached the corresponding support at 40k and thus begins its accumulation for a new upward rebound which does not happen overnight, usually this cycle takes its required time.
Greetings @carlir the BTC price decline coincides with many external economic factors, in addition to their respective market correction, and with this second decline in its price has already reached the corresponding support at 40k and thus begins its accumulation for a new upward rebound which does not happen overnight, usually this cycle takes its required time.
Hello @carlir
What you mention in your post "this market crash yesterday not only affected these two important cryptocurrencies, but also the rest of the cryptocurrencies", is part of the great pulling power that BTC has on the general market, the pullback came as a surprise to many, as it was thought that the price would rebound, however, it is a healthy move that we will see in two to three more opportunities, as the price is in a sideways zone between 40K and 50K before resuming the next rebound to 60K.
Best regards, be well.
Hello dear @lupafilotaxia, the BTC is the referential crypto of the market, therefore according to its movement the rest of the cryptos will also have it, although each cryptocurrency has its own movement this is affected by that of the BTC, as you say so let's wait for the next upward rebound.
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Greetings friend @carlir, I think there are several factors that have been behind the fall in the price of BTC, this is added to the list, but it has remained above the support of 40000, hopefully it will soon resume its upward cycle although we know it may take some time and that the conditions come together again, but no doubt the BTC is the reference cryptocurrency and news like this affects it and drags the rest of the currencies.
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Dear @carlir
I will not lie - I've been waiting for this correction for quite sometime. Since flash-crash that took place at the beginning of this month. I hoped that we will go down to 41-43k levels so my buy orders would be filled in.
My prayers have been listened by mighty forces! :D
On the more serious note: I found it so strange to see so much of FUD on the markets. All media channels and youtubers keep talking about Evergrande, almost like if it would be something completely new.
The way I see it: Evergrande has been having huge issues for quite a while now. And this problem will not disappear or be solved anytime soon. And nothing meaningful had happened to bring more attention to this issue now. It's an OLD topic. Their liquidity crisis have been happening for several months already. And hardly anyone talked about it.
But now, it has been spotlighted moment after previous flash crash (the one that took place on "El Salvador" bitcoin day).
It's hard not to have an impression that it is well organized media campaign, which has a purpose to bring panic into the market and crash it. Bad news usually "travel" in packs. And oftern those bad news are OLD. And it's only purpose is to shake out remaining of "weak hands".
I wonder if you would agree with my point of view, or would you see things from different angle?
Cheers, Piotr
Greetings friend @crypto.piotr, certainly behind all this market movement there are dark hands that want the crypto market to collapse and perform unscrupulous movement to try to achieve it, although they have not had the expected effect if they have caused a great negative impact on michos investors, personally I was unaware that this real estate as it is Evergrande already had liquidity problems for some time, which confirms your suspicion, because it affects the market at this time and before not.
Thanks for your contribution my friend.
China crises has made the whole Market up and down. This is not the first time they have created you can see the previous history.
But when when china did this the market has move upward after a short period of time. So be positive and hold your position.