China Prompts Bitcoin Plummet To $42,600
Bitcoin has taken a significant hit today by falling 10% all the way down to $42,600. The widespread sell off appears to have been caused by a potential debt default by China. This has spooked crypto markets and has wiped billions off their value to a low of $1.9 trillion.
CoinMarketCap states this decline reflects a loss of $250 billion. A huge amount wiped off crypto assets in a moment. These type of events always highlight the volatility of cryptocurrencies. Although at the time of writing Bitcoin has managed to stage a small recovery now trading around the $44k mark.
It seems that the drop occurred after the huge Chinese real estate firm Evergrande plummeted to an eleven year low. This provoked a huge sell off and prompted fears that the company might even collapse. Evergrande warned investors last week that it might not be able to pay debts which spooked the Chinese real estate sector. This has now spread to other markets. Let's hope we don't see a Chinese Lehman Brothers moment.
Couple this with a continuing increase in regulatory provisions in China and we get a dent in the crypto market on the scale we have seen today. It's not that often that one Chinese company can cause such damage but given the economic status of China we might all have to start getting used to these type of instances.
As for Steem well it didn't escape the dip with it falling by 12% down to $0.55, where it's currently trading at.
We hope this turns out to be more of a significant ripple than a significant tide. We'll all have to wait and see.
The ACOM Team
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The influence of China on crypto never cease to amaze me. It's funny how a single new from China can cause FUD amongst crypto investors and then suddenly lead to a market crash.
I never even knew China was the cause for the drop this time around again. Even my crypto OG CoinMamba couldn't figure out on time what the cause what. Thank for providing us with such a vital information.
How are you dear friends @acom good night
I really appreciate this information, it lets us see clearly why this notorious drop in bitcoin is happening.
Waiting for the new release
Thank you for always keeping us informed friend @acom.
Many Blessings.
Buenas noches equipo y amigos.
Esperemos que está caída no dure mucho, toca esperar y tener fe de que vendran días mejores para btc y Steem. Saludos 😊
Thank you for the information. But my idea is that Bitcoin will go back to its previous place, again giving a big push. Many coins have depreciated due to the fall in the price of Bitcoin, but I think they will all reach the high place again.
This one was pretty much across the board... the stock markets also took it on the nose. At one point, the Dow Jones was getting close to being down 1,000 points on the day... let's hope it IS just a ripple.
=^..^=