Almost all crypto prices have crashed by more than 10 percent today and not only the crypto market is being hit hard. There is a lot of fear in the traditional stock market because of the enormous debts of the Chinese real estate giant Evergrande.
The crypto market loses 10% of its value
In the past 24 hours, the Bitcoin price has fallen by more than 9% to a price of $42,500. The president of El Salvador has taken the opportunity to buy additional Bitcoins, but that news has not done the price any good so far. Other cryptocurrencies are also having a hard time today. For example, the Ethereum price has fallen by almost 10 percent in 1 day and Ripple has even lost more than 14% of its value.
However, as we wrote above, this time it is not just the crypto market that has problems. The global stock market is also showing a significant dip today.
Evergrande’s Huge Debt Rocks the Stock Market
For example, the S&P 500 fell nearly 1% yesterday. The AEX index is even in the red today with almost 2 percent. According to Yahoo Finance, this ended the fourth-longest positive streak since at least 1928.
A recently published report from the University of Michigan also showed that consumer confidence in the stock market is declining, a trend that could also affect the crypto market itself.
The global market downturn also appears to have been fueled by fears of China’s Evergrande, a real estate giant embroiled in a debt crisis that could undermine China’s growth prospects.
Evergrande has been in serious financial trouble for a long time. The company has more than $200 billion in debt. The company has also announced that it can no longer pay interest to creditors. In fact, Evergrande is so desperate that it is now offering real estate to creditors to repay its debts.
If Evergrande fails, the economic consequences for China will be very serious. It is therefore not surprising that it is shaking up the entire world market today.