The fear of a possible bankruptcy of the real estate developer Evergrande from China and the consequences on the national economy of the country as well as other markets has also reached the crypto sector. After a minus of eight percent to below 43,000 US dollars on Monday, the Bitcoin price fell to 40,500 dollars on Tuesday night. During the course of the day, the largest cryptocurrency recovered, but experts fear a further decline in the price.
Impending real estate crisis depresses the crypto market
The current bad mood in the financial markets affects the area of crypto currencies as especially young asset class, according to market analyst Timo Emden from Emden Research. According to Emden, China could let the heavily indebted Evergrande group hit the wall and thus possibly trigger a global real estate crisis, so the fear. According to Emden, Evergrande is “on the verge of insolvency”, as it says in the Handelsblatt.
Accordingly, investors are currently trying to park their money in potentially safe asset classes. In addition to the US dollar, this also includes gold. Risky investment opportunities such as Bitcoin or other crypto currencies are currently rather unattractive. If the Bitcoin price should slide permanently below the mark of 43,000 dollars, according to Emden, there is a risk of new turbulence. On Tuesday evening, Bitcoin was around $ 42,500.
