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| Bitcoin drops on fear of China debt crisis |
The 2021 Bitcoin bull run ended in June when Chinese regulators took action against crypto miners.
Bitcoin, Ethereum, and almost all other cryptocurrencies have experienced sharp declines. It appears to be related to Chinese activities again, although this time it is of a different nature.
Bitcoin price is down more than 11% in the past 24 hours to just over $41,600.
When the cryptocurrency dropped to $40,500, it dropped to almost $40K.
This is the first time the coin has dropped below $40K since early August.
The token reached a record high of $64,863 on April 14th.
Ethereum is the second largest cryptocurrency by market cap, but it is also the most used currency for crypto transactions, dropping by 12% in the past 24 hours.
Its price just exceeded $2,900, falling below $3,000 for the first time since August 8.
It is often difficult to determine the reason for the crash of the cryptocurrency market because it is a decentralized system.
The price development is now related to the Chinese real estate market, especially the Chinese Evergrande Group. It is the world's most indebted real estate company with an investment commitment of more than $300 billion.
Fearing that China will allow Evergrande to default, the global market has collapsed.
Bitcoin price drops more than 10%
The Dow Jones Industrial Average is down 1.78%. Hong Kong's Hang Seng Index is down 3.38%.
If Evergrande fails, it could have a major impact on the entire Chinese economy, which in turn could affect countries around the world.
The collapse of the Evergrande has been likened to the bankruptcy of Lehman Brothers before the global financial crisis, although it is unlikely to have any serious repercussions.
Evergrande's stock price is down 85% over the past year. Its offices across China have received protests from affected employees, builders and owners.
The Chinese authorities halted the cryptocurrency market in June. It did so after officials clarified that a 2013 ban on mining and other cryptocurrency-related services had been enforced more stringently.