Is Crypto in Trouble as China’s Evergrande Stock Falls 90%?
- Stocks of Evergrande Group declined by almost 90% on Monday.
- Tensions mount as the crypto community fears the selloff will impact the crypto market.
- The crypto market is in the positive region, with major cryptocurrencies recording gains in the last 24 hours.
Stocks of China-based Evergrande Group collapsed shortly after it resumed trading on Monday as investors hurried to dump the stomp following a 17-month suspension, a report reveals. The company’s troubles, which began in 2021, heightened this year after it filed for bankruptcy.
As soon as trading started, the shares plunged 87% within the first few minutes. The selloff adds to the troubles of the company, which is battling mounting liabilities, losses, and increased regulatory scrutiny. Even though the company has set plans for restructuring in motion, the prolonged real estate crisis in China has exacerbated the company’s woes.
As the drama unfolds, the crypto community sits on the edge, monitoring the impact of the selloff on the crypto market. The Evergrande bankruptcy announcement coincided with the Bitcoin selloff, which led many analysts to believe the bankruptcy filing influenced the selloff. However, several others believe the events may be unrelated, citing SpaceX’s rumored Bitcoin sale as the major catalyst.
Data from CoinMarketCap shows that the cryptocurrency market is in the positive region after tumultuous weeks that wiped out billions. The world’s largest cryptocurrency, Bitcoin, has made a 0.09% gain in the past 24 hours. The token is exchanging hands at $26,090 and has seen a 59% in its trade volume over the past day.
Likewise, Ethereum is trading at $1,651, a 0.04% increase in the past 24 hours. The token has even seen a more significant trade volume, recording an 85% increase in the past 24 hours. Ethereum sits as the second-largest cryptocurrency network, with a market cap of $198 billion.
While there is increased tension, the data from the price charts show that the selloffs haven’t impacted the cryptocurrency market. By comparison, after the company announced its bankruptcy filings on August 17, Ethereum had declined by almost 6%. Likewise, Ripple also declined by 14%, Litecoin by 13%, and memecoin Shiba Inu by 8%.
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