February 28, 2024
The Evergrande Effect Leads Bitcoin to a Strong Devaluation |  Finance

The Evergrande Effect Leads Bitcoin to a Strong Devaluation | Finance

Quote from Cryptocurrency was strong stayed This Monday (20), due to instability in the markets due to the possibility of Collapse Give Chinese real estate giant Evergrande. NS Bitcoin It closed the day 8.1% lower, quoted at $43.743 on the New York stock exchanges, and reached its low earlier, with a 10.7% drop, selling at $43,000, the lowest price since August.

In addition to the popular bitcoin, the cryptocurrency of the so-called decentralized finance (DeFi) platforms is operating with the largest devaluation. Cardano NS Dogecoin recorded a 10% decrease in market value, while dotted By 16%, according to the portal CoinMarketCap.

Photo: Gerd Altman/Pixabay

Market value losses followed the tone of the international market, while investors weighed potential risks hypothetical From Evergrande, with religion Estimated at 300 billion US dollars, the monetary policy meeting expectations of Federal Reserve, equivalent to the US Central Bank. The S&P 500 closed down 1.7%, the worst result since May, and European stocks saw their biggest drop in two months.

The rapid decline in the markets is expected to accelerate as more than 272,000 investors have settled accounts in the past 24 hours, equivalent to $1.3 billion in cryptocurrencies, according to the platform. Bybt.

“This is part of an established pattern where investors sell riskier assets to cover margins and/or stay on the sidelines until markets calm down and they feel more comfortable returning to riskier positions,” says Leah Wald, CEO of Valkyrie Investments.

Bitcoin is expected to test its 100-day average change, which is currently $40,655, and could drop to $40,000. However, the coin fell to low levels in the Trading Envelope indicator, indicating that the devaluation was very sharp and sharp.

Although Bitcoin is not always traded with the financial markets, its correlation with monthly valuations in NasdaqNYSE, has been positive since February 2020. Indications are showing that cryptocurrencies and markets are behaving similarly.