Bitcoin Tumbles Following News of Evergrande Default
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The price of bitcoin crashed below $50,000 after news emerged that Evergrande had defaulted on its debt to global investors
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The flagship cryptocurrency is currently valued at $48,327, according to data from CoinMarketCap
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Evergrande’s total liabilities stand at over US$300 billion and Fitch has downgraded the property giant to “Restricted Default”
The US global market opened trading today with a dip after news emerged that Chinese property developing giant Evergrande had defaulted on its loan.
The indebted real estate developer had been facing difficulty in overcoming an ongoing liquidity crisis that created uncertainty across global markets.
On Thursday, major credit-ratings firm Fitch Ratings declared Evergrande in the “restricted default” class.
The major news had a huge negative effect on the cryptocurrency market, forcing the price of Bitcoin below $50,000 on Thursday.
The value of the flagship cryptocurrency is currently at $48,327, after falling below $48,000 on Thursday.
The biggest daily loser among the top 10 cryptocurrencies by market cap is Polkadot. DOT has lost more than 7% in the last 24 hours.
Read also: WhatsApp Launches Cryptocurrency Payment With Novi
In the top 100 cryptocurrencies, it is also mostly red, with the exceptions being GALA) +15%, and Near Protocol (NEAR) +10%.
At the time of this report, the cryptocurrency market is valued at $2.24T, according to CoinMarketCap.
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