Bitcoin Slips Below $ 45,000 in Large Cryptocurrency Sale Driven by Concerns Over Fallout from Evergrande’s Default | Currency News | Financial and business news
Bitcoin fell below $ 45,000 during a large cryptocurrency sell-off on Monday, sparked by fears that the effect of Chinese real estate giant Evergrande’s debt tightening would spill over to other classes of active.
After a moderately bullish weekend, the crypto market fell sharply as bitcoin fell nearly $ 2,000 and took the crypto market cap below $ 2,000 billion.
Bitcoin was last trading 7% to $ 44,329 at 7:15 am ET, Ether was down 8% to $ 3,089, ADA fell 12% to $ 2.08, the Ripple’s XRP fell 13% to $ 0.93 and dogecoin fell 10% to 21 cents, according to data from CoinDesk. Solana was down 13% to $ 135, according to CoinMarketCap.
Some analysts have blamed the sudden drop on beleaguered developer Evergrande, which is engulfed in overwhelming $ 300 billion in debt. Fears of its failure caused turmoil in traditional markets, pushing down Dow futures contracts by more than 300 points on Monday.
Global equities generally fell, hit by the fallout from the developer market.
“There has been a general mood for risk sweeping through the markets today,” Jeffrey Halley, senior market analyst at OANDA, told Insider. Concerns about the potential collapse of Evergrande have spilled over to crypto and other markets, he added.
The coming week is set to be choppy, with bitcoin’s potential pullback to $ 41,000, although key support remains at $ 44,000, said Jonas Luethy, trader at UK digital asset broker GlobalBlock.
El Salvador has taken advantage of the drop by adding 150 more bitcoins to its holdings, now amounting to 700 bitcoins or $ 31 million. “They can never beat you if you buy the dips”, President Nayib Bukele said in a tweet.
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