Bitcoin Flash Crash Wipes Out over $200 Billion from the Crypto Market Due to Impending Bankruptcy Evergrande

The bitcoin exchange rate has fallen to its lowest level since early August; following a moderately bullish weekend, the market took a sharp turn downward, Blockchain News reported. The digital currency is responding to the impending bankruptcy of Chinese real estate giant Evergrande and seems to be following regular stock exchanges around the world. The crash wiped out more than $200 billion from the crypto market and has not only affected bitcoin, but all other cryptocurrencies, which seem to be on a downward trend with no real sign of recovery just yet. The value of bitcoin fell by more than 8 percent in 24 hours. According to CoinMarketCap, the bitcoin rate stood at 37,000 euros on Monday, dropping down to almost 36.000 on Tuesday afternoon. Bitcoin does not always move along with the stock exchanges, but it does look like it does now. This is probably because the digital currency has increasingly become integrated into the financial markets worldwide. Evergrande, China’s second-largest real estate group, is struggling with a mountain of debt of more than 300 billion euros, and investors fear that the impending bankruptcy could have a domino effect on the Chinese real estate market. Read more.

Location