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Cryptocurrency collapse today, what happened?

2 min read

 

It thundered so much that it rained. The question reappears on the market Evergrande, with China’s largest real estate group almost officially going bankrupt and having, at this point, no more chance of salvation, if not an intervention in extremis that now seems to be Out of time.

The German company DMA in fact, it initiated the procedures for the bankruptcy – a German consulting firm which also stated that it had passed i canons 30 days subsequent to expiration. Earthquake which also had repercussions on the market for cryptocurrencies.

To take advantage of what could be, with the right conditions, a day of recovery towards the maximum, if the other markets were to react in a not too negative way to the bad news coming from the China.

What happened and how close is Evergrande to bankruptcy?

In reality, there has been a bit of confusion in the spread of the news of the bankruptcy of Evergrande. The group is not yet technically failed, even if the initiation of the procedures DMA it would not seem to have, at least for the moment, any kind of alternative outcome. With a small surprise, however, because the group would have paid in extremis at least 2 of the blocks of interest and coupons out of 3 that were due.

BTC he felt the blow, and while he was almost on $ 69,000, returned below altitude within a few tens of minutes $ 65,000, however, meeting just above the $ 64,000 a very strong support, on which the nocturnal movement was then built, that is during the Asian phase.

Complex situation, with only one possible outcome, but the risk off

What happens on BTC with every great turbulence of market in jargon it is called risk off and they are operations through which the large market operators try to get rid of the securities considered to be at higher risk.

It is more than normal that the main cryptocurrencies, let’s also talk about ETH for example, they suffer the effects of these transactions, as they are still assets that have a higher risk profile than practically any stock or other financial asset.

The fact that BTC and the rest of the sector, however, held, even before the news of at least partial payment by Evergrande, is a very good sign. Just a few weeks ago, a market turbulence of this kind would have been paid for by BTC and from the sector in a much more violent way, while today it was only a correction from all-time highs, among other things on a price share only a few days ago we would have considered as very high.

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