The fall down of the Chinese real estate giant Evergrande Group swept the entire cryptocurrency market. Evergrande’s financial crisis caused investors to worry about China’s catastrophic debt default, which caused panic selling in the market.
Bitcoin and Ethereum are the first to bear the brunt, and the entire cryptocurrency market value has evaporated by $250 billion.
According to Coinmarketcap, starting from Monday morning, the value of global cryptocurrencies plummeted to a low of about 1.8 trillion U.S. dollars, which occurred at approximately 8 o’clock UTC time, a decrease of nearly 11% from the previous 24 hours. The market value has evaporated by more than $250 billion.
At the time of writing, the current market value has rebounded, around $1.9 trillion.
Bitcoin price fell by 9% today to less than $42,669, which is the lowest level in more than a month, while the price of Ether fell nearly 10% to a low of $2,940, the lowest since early August level.
Bitcoin was trading at $42,863.02, and the price of Ether returned to the support level of $3,000, trading around $3,034.31 at the press time.
The remaining cryptocurrencies, such as Solana’s sol and Cardano’s ADA, which have skyrocketed recently, also fell by about 10% at the peak of the sell-off.
The reason for this plunge is not just because the Chinese real estate giant Evergrande Group is carrying a massive debt of $305 billion and is unable to repay the debt due this month, but also faces the risk of bankruptcy which poses a threat to the broader market.
And there is also the panic selling caused by the increasingly stringent national regulatory review of cryptocurrencies.
Recently, according to a Bloomberg report, the derivatives regulator is notably investigating the leading cryptocurrency exchange Binance for possible insider trading and market manipulation.
Also, as reported by Blockchain.News on September 13, The South Korean Financial Services Commission (FSC) has begun to tighten the supervision of local and overseas cryptocurrency trading platforms. This regulation may terminate nearly two-thirds of unapproved South Korea’s cryptocurrency exchanges for legal transactions.