Crypto Currency Bitcoin, Ethererum and other alt coins have fallen over 10% in the last 24 hours.
Bitcoin’s 2021 bull run ended in June when Chinese regulators cracked down on cryptocurrencies and mining. Both Bitcoin, Ether and almost all other cryptocurrencies experienced a sharp decline on Monday night, and it again appears tied to activity in China, though of a different kind this time.
Bitcoin had it’s price drop over 11% in the past 24 hours, sitting at just over $41,600 . Bitcoin came close to falling below $40,000 when it dipped to $40,500 at 5:30 p.m. PT time. It may be the first time Bitcoin’s price dropped below $40,000 since the beginning of August. Bitcoin’s all-time high was $64,863, hit on April 14.
Ether, the next largest cryptocurrency by it’s market cap but the currency most used in crypto transactions, is down 12% in the last 24 hours. It at just over $2,900, the first time it’s fell below $3,000 since early August. The little altcoin that could –Dogecoin is still sitting near 20 cents, down from its headline-making 70-cent high in late May this year.
As a decentralized eco-system, it’s hard to speculate precisely what is causing the cryptocurrency markets to crash. Monday’s price action is thought to be connected with China’s property market and particularly the Chinese company Evergrande Group. Evergrande is the world’s top indebted real-estate company, with over $300 billion in liabilities, and markets around the globe have dipped out of fears that China will allow Evergrande to default on those all it’s debts.
If Evergrande does default, it could have major implications on China’s entire economy, which could thus effect countries around the world. The collapse of Evergrande has been said to be like that of Lehman Brothers bankruptcy that preceded the Global Financial Crisis, although its impact is very unlikely to be as fierce. Evergrande’s stock has dropped to 85% in the past year, and its executive offices through China have seen massive protests from it’s employees, builders and also homeowners.
It’s has been a very unstable month for Bitcoin, which surged throughout late August and through early to mid September in it’s anticipation of Bitcoin becoming legal tender in El Salvador, a world first. El Salvador’s rollout of Bitcoin was beset by some tech issues, which invariably scared global investors and caused a massive selloffs. Time will tell if Bitcoin will overcome this next financial hurdle poised by China’s economy.