Cryptocurrency price

Checking the price of cryptocurrency: Bitcoin tumbles on Evergrande Woes

Cryptocurrency prices fell on Monday as China Evergrande group’s bond payment issues rocked international markers.

Bitcoin, the world’s largest cryptocurrency, fell 7.4% to $ 43,780 at last check, according to CoinDesk. Ethereum fell 9.4% to $ 3,034 and Dogecoin fell 11% to 21 cents.

China is facing the “Lehman moment” with the collapse of Evergrande, so what are the risks?

Evergrande, China’s second-largest real estate developer, has over $ 310 billion in debt.

The company has been in urgent discussions with its many creditors in hopes of delaying payment on two separate bond obligations due later this week.

Evergrande has been caught in a liquidity crisis that could cause it to both default on its bond obligations and be subject to bankruptcy proceedings. This in turn could trigger the forced sale of hundreds of commercial properties.

Worried about Bitcoin volatility? “Invest with prudence”

James Edwards, Cryptocurrency Specialist at Searcher, notedBitcoin is like a very tight spring right now, but it’s still unclear whether it will pull forward or warp under pressure. “

“Record amounts of bitcoin have been taken off the exchanges, with levels at their lowest in the past 12 months,” he said.

“Low liquidity usually leads to unstable price volatility, which can easily tip back and forth.”

Regarding the macroeconomic outlook, said James, “the reduction in bitcoin held on the exchanges suggests that there is very little appetite for selling, with the market now focusing on the next step ahead of another wave of trading. profit taking “.

“Unfortunately, the uncertainty surrounding Evergrande could spill over into cryptocurrency markets, which could see support for retesting bitcoin at $ 42,000 in the immediate future,” he added.

On the regulatory front, Winston Ma, former managing director and head of North America at China Investment Corp., said China appeared to be sticking to its original timeline to officially launch its digital currency (e-CNY) at the Beijing 2022 Olympic Winter Games. “

“Since [the] The People’s Bank of China released its digital currency white paper in July, China ramped up e-CNY testing, ”said Ma., Author of“ The Digital War – How China’s Tech Power Shapes the Future of AI, Blockchain and Cyberspace ”.

Chinese media reported last week that a PBoC team visited venues for the 2022 Beijing Winter Olympics to further test e-CNY ATMs and mobile payments, in what is described. by PBoC Vice Governor Fan Yifei as the “last push,” Ma said.

He added that the West finds it difficult to understand the idea that China is many years ahead of the United States and Europe in the development of sovereign digital currencies.

Ma said China’s launch of e-CNY as a government currency, as well as El Salvador’s adoption of bitcoin as legal tender, “will become important benchmarks for all nations embarking on the digital assets, ”said Ma.

David Lesperance, Managing Partner of Immigration and Tax Advisor with Lesperance & Associates, said US regulators “have their teeth in their teeth.”

Letters from the IRS to people whose names were revealed by mixers like Helix; to “wash the rules of the sale”; to the Securities and Exchange Commission which is attacking Tether for where it has “invested,” Lesperance said, “the crypto world is feeling the inevitable heat of regulators.”

“Whether it’s exchanges, stablecoins, DeFi, miners or cryptocurrency owners,” he said, “the way these groups have chosen to deal with regulators and the tax authorities will define those that are still in force in 18 months. “

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