Bitcoin Drops Below $45,000. Evergrande Contagion Fears Hit Cryptocurrencies

Barron's2021-09-20

Bitcoin and other cryptocurrencies slumped Monday as assets of all shapes and sizes were caught up in a wave of selling brought on by contagion fears from the mounting problems at embattled property giantChina Evergrande Group.

Bitcoin, the world’s largest cryptocurrency, dropped 6.63% to $44,979. It dropped to as low as $44,523 over the past 24 hours. Despite Monday’s slump, Bitcoin has risen more than 55% so far in 2021.

Ethereum, the second-largest cryptocurrency, was down 8.14% at $3,146.

Evergrande, the world’s most indebted developer, owes more than $300 billion but Chinese authorities have warned banks the company  won’t be able to pay debt obligations due Monday, according to reports. Evergrande said Sunday it has begun repaying investors in its wealth management products with real estate.

Futures contracts linked to theDow Jones Industrial Averagefell 535 points, or 1.55%. The blue-chip index fell 166 points on Friday to close at 34,585.

S&P 500futures dropped 1.3% andNasdaqfutures slumped 1.06%.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Leave a comment
9