Evergrande Surges 27% Post Nationalization Rumors, Crypto Market Surge in Tandem

By Prashant Jha
Published September 23, 2021 Updated September 23, 2021
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Evergrande
Source: Reuters

Evergrande Surges 27% Post Nationalization Rumors, Crypto Market Surge in Tandem

By Prashant Jha
Published September 23, 2021 Updated September 23, 2021

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.

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.

Evergrande
Source: ZeroHedge

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.

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.

Evergrande
Source: TradingView

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.

Evergrande
Source: TradingView

Apart from $BTC and $ETH, the majority of the crypto market traded in green with several altcoins seeing double-digit gains.

Evergrande
Source: Coin360
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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Prashant Jha
1090 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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