ETH and BTC prices drop 5% after Evergrande and Kaisa crash

ETH and BTC prices are down 5% due to issues with Kaisa and Evergrande, while the rest of the stock and crypto markets are down, so let’s find out more in today’s bitcoin news.

Just when things were looking better for investors, the crypto market rebounded faster than China’s home sales. ETH and BTC prices fell 5% last day as the total crypto market capitalization lost 6% of its value, according to Coingecko. Share prices trended lower after Chinese real estate developers Kaisa and Evergrande failed to make scheduled payments on British dollar bonds.

Bitcoin has had a slow December as the crypto asset by market cap started the month above the $ 57,000 mark but then fell below $ 48,000, and it’s a similar story for most coins. Ethereum has risen from $ 4,700 to under $ 4,200 and the total capitalization of the crypto market has lost $ 250 billion since the beginning of the month. Most of the losses occurred on Friday when the BTC price fell 17% in a matter of hours. Since then it has been able to make some price gains before falling back slightly today.

The sell-off has many causes, such as the liquidation of investors on the futures market, which only creates a stratification effect during the liquidation. These liquidations started because the cryptocurrency generally moved the track music with the stock market, as it did this year as stocks fell on Omicron concerns and a change in reserve policy. This was the case again, despite the fact that the Dow Jones Industrial Average as a stock index of 30 US companies was flat, so the NASDAQ fell more than 1% and the S & P500 began a trend reversal earlier this week.

The US market could respond to the problems faced by the largest developers in China, unable to cope with falling home sales and government restrictions on real estate. Kaisa has defaulted on $ 400 million in bonds, while China Evergrande Group missed its final interest payment deadline a week ago. In view of the overlaps between the global economy, is another financial crisis to be expected? While Bitcoin positions itself as an inflation hedge, the entry of institutional investors into the cryptocurrency has made the market less immune to movements in other markets.