In a recent interview, Galaxy Digital CEO and founder Mike Novogratz shared his view on why the liquidity crisis of China Evergrande Real-Estate Group has hit the cryptocurrency market so hard. He also reported what price levels BTC and ETH holders should follow. Details are here.
Shared on September 13, “Big Event That Will Bring Bitcoin Price Below $10,000! TETHER Time Bomb!” target=”_blank” In our content titled, we talked about a development that could bring the market down. As expected, the decline in the crypto markets was driven by the liquidity crisis of Evergrande Group, the second-largest real estate company in China, with almost $2 trillion in debt from its shareholders. While the debt securities will expire by the end of this week, the company’s cash reserves to make the necessary payments are currently low.
According to Novogratz, the reason this development has impacted the market is that many investors believe that most of Tether’s USDT supply is backed by securities from Chinese companies, especially Evergrande. USDT has managed to perform well over the past few days while BTC and other cryptocurrencies fell. As it is known, USDT is the most popular stablecoin in the market and is often used to buy and sell Bitcoin, ETH and other digital assets on crypto exchanges.
However, Chinese crypto journalist Colin Wu reported on Monday that he has confirmed that Tether does not have any commercial documents published by Evergrande.
Alongside these, Galaxy Digital CEO shared his views on the current decline, especially in Bitcoin and Ethereum. Novogratz believes that $40,000 for Bitcoin and $2,800 for Ethereum are very important levels to watch right now. The famous CEO states that as long as the first and second largest cryptos remain above them, the market is in good shape.
“We held $40,000 overnight in #bitcoins and $2,800 in #ethereum. Those are very important levels for people to watch. As long as those hold, I think the market is in good shape,” says @novogratz front #crypto during #evergrande. pic.twitter.com/hcKuhUssAq
— Squawk Box (@SquawkCNBC) September 21, 2021
Finally, at the time of writing, Bitcoin is trading at $43,097 and Ethereum at $3,022.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.