Sign Up on MEXC
China’s real estate giant Evergrande breathed a sigh of relief after the People’s Bank of China injected nearly $19 billion into the banking system yesterday, in a bid to bailout the debt-ridden real estate giant. Evergrande has over $300 billion in liabilities, making it the most indebted real-estate company and many believe its fall could lead to 2008 like market crisis. Thus, a bailout from China didn’t come as a big surprise to many Wall Street pundits.
Evergrande shares which were on a continuous decline over the past week extended gains over 27% yesterday and rose by 15% in the Hong Kong stock market amid rumors of nationalization.
*EVERGRANDE JUMPS 15% IN HONG KONG
is this on the rumored nationalization news?
— zerohedge (@zerohedge) September 23, 2021
However, the momentary relief doesn’t lower the impact of the looming crisis as the firm needs to pay nearly $669 million coupon payments this year and debt payments are lined up for up to 2024.
Despite China’s bailout promises, some of the largest holders of Evergrande shares in China are planning to sell their entire holdings. Chinese estates sold nearly $109 million Evergrande shares yesterday itself even though the share price of the firm hit $3.
*CHINESE ESTATES SOLD 108.9M EVERGRANDE SHARES AT HK$9.5B LOSS
*CHINESE ESTATES MAY SELL ALL ITS REMAINING EVERGRANDE SHARES
🇨🇳🇨🇳
— Investing.com (@Investingcom) September 23, 2021
Crypto Market Soars Amid Evergrande’s Recovery
Evergrande’s decline and possibilities of defaulting over the past week have led to a global market downturn including the crypto market. Bitcoin ($BTC) and Ethereum ($ETH) lost key support levels on Monday, but Evergrande’s surge helped the crypto market also trade in the green. The overall crypto market cap rose to near $2 trillion gaining 7% over the past 24-hours.
$BTC reclaimed the $44K range again, rising from the daily low of $41,883 and currently trading at $44,213 with a 5% surge in the last 24-hours. With the bearish September month nearing an end, BTC bulls look to build price momentum leading into October. Market pundits are still adamant on the $100,000 price by the end of the year.
Ethereum ($ETH) also regained its $3,000 key level after consolidating around the $2,800 mark for the past three days. The second-largest cryptocurrency by market cap is currently trading at $3,130 with a 7% rise in the past 24-hours.
Apart from $BTC and $ETH, the majority of the crypto market traded in green with several altcoins seeing double-digit gains.
- Fidelity, Grayscale, VanEck Dump Ethereum Amid ETH Price Crash
- Ethereum Treasury Firm SharpLink Confirms Compliance Amid Nasdaq Oversight
- Trump Media Acquires 684M CRO for Cronos Treasury, Strikes Deal with Crypto.com
- SEC and CFTC To Host Roundtable To ‘Harmonize’ Regulatory Frameworks for Crypto
- Hyperliquid Announces Plans to Launch USDH Stablecoin, HYPE Price Climbs
- Cardano Price Targets 30% Surge as Top Economist Calls for Fed Cut
- ETH Price Forecast as Grayscale’s Covered Call Ethereum ETF Spurs Optimism — Is $8,500 in Sight?
- Bitcoin Price Prediction as SEC Unveils Agenda for Crypto Regulation — Is $200K Next?
- ONDO Price Prediction Amid Bitget Collaboration on Tokenized Stocks and ETFs: Is $2 Next?
- Dogecoin Price Forecast as REX Osprey ETF Sparks Hype — Is $5 Within Reach?
