Bitcoin corrects after rumors of Evergrande bankruptcy

Broke or not? The rumor mill about Evergrande continues to simmer – Bitcoin is not spared either.

The confusion surrounding the Chinese real estate developer Evergrande last. Because yesterday, Wednesday, November 10th, rumors circulated that another interest coupon payment from the Chinese group had not been received by investors.

The latest reports now say: all nonsense. Evergrande was able to service the outstanding loan at the last minute. That reports Bloomberg with reference to unspecified insiders who are said to be among the company’s creditors themselves. On the same day, however, there was the contradicting report AP Newsthat Evergrande is now officially broke. Default or not: the uncertainty surrounding the loan default was enough to stagger the financial markets. For example, the most important share index in the USA, the S&P 500, temporarily lost up to 1.2 percent compared to the previous day.

Overall, the medium-term downward trend in the share index is thus further intensified. Because since the all-time high of 4,718 points, the S&P 500 is almost 2 percent in the red.

The S&P 500. Source: Trading View.

Evergrande is taking Bitcoin with it

But the crypto market was not spared from the uncertainties from China. While the community celebrated a new all-time high of 69,044 US dollars yesterday, Wednesday, today things are going down for the time being. Compared to the previous day, Bitcoin is 2.5 percent in the red at the time of writing – and corrects even more than the traditional markets. Digital gold is currently trading at USD 65,013.

Bitcoin 1

Even Jan Wüstenfeld, an economist and on-chain analyst, suggests a causal connection between the Evergrande rumors and the Bitcoin correction. He said to BTC-ECHO:

“If we look at Bitcoin’s price slump yesterday, it is in the period in which the rumors of a default by Evergrande surfaced. Something similar can also be observed in the financial markets in general. Due to the timing of the two events, a connection is obvious from my point of view. “

The market as a whole also has to accept a damper. With a price minus of 1.5 percent, the market capitalization of all crypto currencies is currently back at just under USD 3 trillion.

The most recent ups and downs show how sensitively Bitcoin is now reacting to the latest news on the financial market. While yesterday rising inflation figures were the drivers of a real price rally, today worries about a possible financial crisis are putting pressure on prices on the market.

However, it must be stated that this is more likely to be a short breather than a long-term trend reversal. Because even on a weekly basis, BTC is still around plus.

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