BTC holds $ 48,000 as Evergrande forms the “Lehman Brothers Moment” for China
Bitcoin (BTC) cautiously held $ 48,000 on Thursday as excitement grew thanks to China’s witness to a “Lehman Brothers moment”.
Tether CEO reassures Evergrande
Data from Cointelegraph Markets Pro and TradingView show BTC / USD traded near $ 48,000 on Thursday.
While progress toward $ 50,000 is less critical, analysts have widely hoped that a debt crisis will bring much-needed confidence to China’s second largest real estate developer.
Real estate company Evergrande (3333.HK) stopped trading bonds on Thursday, the latest episode in a saga in which the giant has suffered several rating downgrades.
With $ 300 billion at stake, comparisons to the global financial crisis of 2008 were easy to make.
“China’s Lehman moment. Money printing will be massive, I repeat MASSIVE! “PlanB, creator of the Bitcoin pricing model line, told Twitter followers.
“That’s good for Bitcoin.”
PlanB refers to a potential government bailout for Evergrande, or the wider implications of its crisis, which various sources warn that could affect many economic sectors both inside and outside Beijing’s jurisdiction.
Massive money printing by central banks previously caused Bitcoin to surge from a low of nearly $ 3,000 in March 2020 to an all-time high of $ 64,500 just over a year later.
Evergrande stock was trading at HK $ 2.63 at the end of Hong Kong trading on Thursday, up from HK $ 5.26 in early July. At its peak in 2017, it was trading over HKD 30.
The largest issuer of US dollar stablecoins, Tether, has since gone public Confirmed that it wasn’t exposed to the brewing crisis.
Careful optimism for BTC
Bitcoin itself showed the expected strength that day, saving USD 48,000, keeping it above the major moving averages on the daily chart.
Related: Bitcoin Bulls Aims For Profit On $ 195 Million BTC Options Expiring On Friday
The cryptocurrency saw a gold cross this week, the second since August, and fueled hopes that the fourth quarter alone will enable a rally to new all-time highs.
– Rekt Capital (@rektcapital) September 15, 2021
PlanB forecasts September with a forecast “worst-case” month-end closing of 43,000 US dollars, which will then drop to a minimum of 63,000 US dollars in October, forecasts PlanB.