Global markets corrected heavily today, the overall crypto market followed suit, with the global crypto market cap falling more than 10 percent below the $2 trillion mark.
bitcoin It also fell more than 8 percent below the critical support of $45,000 and is trading at $43,237 at the time of writing. According to popular crypto analyst Colin Wu, this sharp correction in the crypto market came as a result of a 7 percent drop in Hong Kong’s Hang Seng index earlier today.
This sudden collapse in the Hang Seng index came as the shares of Evergrande Real Estate Group, China’s second largest real estate developer, lost more than 10 percent in the stock market. The analyst stated the following on the subject:
“The Hang Seng Index fell 3.3%, the largest one-day drop rate in the past eight weeks. In addition, the interest payment date on the two Evergrande bonds is set for Thursday, and the company’s stock price fell nearly 19% during intraday trading, reaching its lowest level since June 2010.
Colin wu also noted that the Hang Seng index correction has had a broader impact on the global market as well as the crypto market. China’s second-largest real estate company is in debt of a whopping $2 trillion, and the company’s step-by-step bankruptcy has put fear into the entire economic market.
The risk of evergrande’s debt spreading worries the global market. Dow Jones futures also fell 450 points from early Monday morning. Fears put the markets under pressure as these developments combined with fears of the Fed’s tightening of the easy money policy. The chart below from Bloomberg shows that BTC and the S&P 500 are moving together as we await the Fed’s decision.
Altcoins Experiencing a Serious Correction
This correction in the cryptocurrency market has brought down altcoins in addition to Bitcoin. In the last 24 hours, the overall altcoin market has lost more than $120 billion.
At the time of writing, all of the top ten altcoins have experienced more than 10% correction. After the strong altcoin rallies we’ve been through over the past few weeks, this is the first major sell-off in the altcoin space.
Ethereum (ETH), Left (LEFT), XRP, Polkadot (DOT) and Avalanche (AVAX) Some of the top-performing altcoins, including Like every year, September this year has been a month of correction for the crypto market.
There have been massive liquidations in the crypto market, with Bitcoin correcting more than $5,000 in the last 24 hours. According to data on Bybit, total liquidations in the crypto market have exceeded $1 billion in the last 24 hours.
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.