China Pumps $19 Billion into Evergrande Bailout
Evergrande, the Chinese real estate giant, has defaulted on its debt payment, and concern of the company’s payment default has resulted in a global financial market depression.
Many feel that the crypto market’s recent slump was impacted by the same, as investors hurried to dump their crypto funds. The Chinese Central Bank, on the other hand, has pumped 120 billion Yuan ($19 billion) into the financial sector with the goal of rescuing out Evergrande.
China’s default on Evergrande might be costly, and many pundits anticipated the country will do everything possible to keep Evergrande afloat, and their predictions appear to be coming true. Now that Evergrande is considering a bailout, the crypto market may experience a trend flip from bearish to optimistic.
China’s Evergrande Bailout Plan May Benefit the Cryptocurrency Market.
For the first time in two months, the crypto industry’s market capitalization fell below $2 trillion, and major cryptocurrencies lost between 20% and 30% of their market capitalization over the last week. While September has historically been a bearish month with negative returns, the Evergrande crisis acted as a catalyst, wiping out the majority of the profits made over the previous two months.
Bitcoin ($BTC) momentarily fell below $40K before returning above the critical support level, Ethereum ($ETH) is trading below the $3,000 mark, and a slew of other cryptocurrencies lost more than 20% of their market capitalization in September.
market capitalization leading crypto assets have lost since September 6th. However, with China beginning to inject stimuli into its financial system, the end of September might reintroduce bulls to the cryptocurrency market. Given that the final quarter of the year has historically been positive for the crypto market, the start of October may assist the market in revert to its August levels of bullishness.