Thursday, April 18, 2024

Bitcoin falls 6%, while Ethereum falls below $3,000, hitting a near two-month trough.

On September 21 this year, the global crypto market experienced a slide due to the uncertainty in the Chinese markets.

Bitcoin and Ethereum Dip

Even after enduring a massive beating, cryptocurrencies like Ethereum (ETH) and Bitcoin (BTC) continued to dip in the next 24 hours.

According to CoinGecko, a cryptocurrency metric, BTC fell 6.4%. Currently, it is trading at $40,835.76. Meanwhile, the second-largest digital asset in the market, ETH, slid 8.6% (valuing at $2,763). This is the lowest ETH has hit since its absolute low of $3,000 in August this year.

The value of altcoins also went down. Two weeks ago, altcoin Solana had hit an all-time high mark of $189. Now it is down 35%, trading at $122.20. Nearly every altcoin has been affected by the dips. In fact, the entire digital asset market is shaking. It saw the liquidation of crypto futures worth $1.2 billion in one day.

Chinese Company Evergrande’s Fallout to Blame

One of the most notable causes for the current state of affairs is the financial fallout of Evergrande, a huge Chinese company. The company owes around $305 billion in debt.

Evergrande, a property developer giant, may fail to repay its debt and lead to a collapse. According to the regulators, the Chinese financial system is in jeopardy unless it finds a solution to this issue.

Why Americans are affected by this is because many banks and global asset managers hold dollar-dominated bonds from Evergrande. During international economic uncertainty, investors are tempted to sell riskier assets, including equities.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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