The uncertainty about the real estate company Evergrande is also noticeable on the crypto market.
(Photo: Reuters)
Frankfurt The concerns about the Chinese real estate giant Evergrande are meanwhile also noticeable in the world of crypto currencies. On Tuesday night, the price of Bitcoin, the oldest and largest digital currency, fell to around 40,500 US dollars, according to data from the crypto platform Coinmarketcap.
A slight relaxation followed by the morning, on Tuesday lunchtime the most important of the now around 12,000 crypto currencies was then quoted at 43,264 dollars. However, the Bitcoin still recorded a minus of 5.8 percent compared to the previous week, within 24 hours the loss was around 3.8 percent.
Other digital values also remained under pressure. The second largest Internet currency, ether, cost around $ 3,000 on Tuesday morning after slipping to a good $ 2,800 during the night. At the beginning of September, an ether cost just under $ 4,000.
Cardano, currently number four in the crypto market, lost 11.6 percent within a week, other second-tier cryptocurrencies such as XRP (Ripple), Solana and Polkadot lost between twelve and 19 percent. The market value of all currently around 12,000 crypto assets was around $ 1.9 trillion on Tuesday. At the weekend it was around $ 300 billion more.
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The trigger for the sharp price losses are worries about the financial problems of the large real estate developer Evergrande from China. In the financial markets one wonders what effects this could have for the Chinese economy and beyond in the event of a deterioration. The real estate sector makes up a significant part of the Chinese economy.
Digital investments like Bitcoin are a comparatively young asset class, some of which are subject to extreme price fluctuations. They are therefore considered to be very risky financial investments that suffer particularly badly from a bad mood in the financial markets. This is also confirmed by market analyst Timo Emden from the analysis company Emden Research: “The fact that the Chinese government may let the giant hit the wall feeds the fear of a real estate crisis on both sides of the Atlantic.” Because Evergrande is “on the verge of insolvency” from Emden’s point of view “.
Expert warns of further turbulence
“Against this background, investors try to park their belongings in the US dollar,” explains the analyst. This constellation could in turn make cryptocurrencies less attractive for investors. The explanation: “Investors are in ‘risk-off mode’, are turning their backs on risky asset classes and are still playing it safe.”
Emden also sees the possibility that further problems could arise on the crypto market: “A significant slide below the $ 43,000 mark could create new turbulence.” Speculatively oriented investors in particular could collapse the group, which is in debt with $ 305 billion and react in panic to the turmoil on the stock market, warns Emden.
Adam Reynolds, CEO for the Asia-Pacific region at Fintech Saxo Capital Markets, is also alarmed: “Bitcoin and Ether are being carried away by the risk-free dynamic that has increased since the end of last week.” He expects “further liquidations”.
Most recently, investors with investments in Bitcoin and other cryptocurrencies suffered greater losses when the Latin American El Salvador became the first country in the world to introduce Bitcoin as an official means of payment on September 7th.
At that time, the price of a Bitcoin had fallen from over 52,000 dollars to 46,000 dollars within 24 hours, the reasons for this were, among other things, technical problems with the introduction, concerns about tightening regulatory measures in other countries and protests by the population against the new means of payment which also stopped in parts of the country over a week later.
With agency material.
More: Evergrande share crashes – Bitcoin and Ether also lose