The market of cryptocurrency is difficult to understand and almost impossible to predict. The fluctuations in the prices of coins are constant and change because of some uncertain reasons. The prices of Bitcoin and other cryptocurrencies went for a toss recently because of the news headlines covering the possibility of default by the Chinese company “Evergrande”. The company is engaged in the real estate professions, which is one of the oldest markets of digital assets and is considered as a way to create wealth.
The effect on the cryptocurrency market because of Evergrande’s news
A huge number of cryptocurrencies trade against the very popular Tether (Stable coins). The effect on the cryptocurrency market because of the news headlines can be understood keeping in mind the growth and magnitude of the size of Tether, Chinese commercial paper, and Bitcoin. Each of the tokens over digital assets is connected to one another and is affecting the whole network of Blockchain technology after the news of Evergrande’s default.
The market capitalization for USTD went from four billion dollars to an unimaginable number. The value folded 19 times in less than a year, and in accordance with all the predictions and analyses by the financial experts in the market. Similarly, the market capitalization for bitcoin, which was expected to grow a few folds in a span of 4 to 5 years, has grown tremendously from approximately $140 billion to one trillion-dollar market capitalization. However, the data from many other reports read different stories. We have to wait and see as the truth unfolds.