Market decline

Chinese real estate market blamed for decline in global crypto market

China-based crypto veteran Collins Wu revealed via Twitter that Hong Kong’s main exchange, the Hang Seng Index, hit a one-year low today after dropping 7%. Prior to this drop, the index’s largest drop was 18%.

Tweet from Collins Wu. Source: Twitter

He further revealed that an 11% loss of shares in the famous real estate company caused the digital asset market to fall sharply. In terms of sales volume, this group ranks second in South Asia as a whole. In terms of profits, this group ranks 122nd in the world.

The Henderson real estate company is also going through the same experience. Wu further revealed that Evergrande’s debts are estimated to be around $ 2 billion. The growing debt problems facing this company are having a ripple effect on the stock prices of other sectors.

News affects the digital asset industry

As widely reported, BTC lost 8.5% of its value following a price drop from $ 48.8K to $ 44.44K. The King’s Coin lost around $ 313 million in an hour. Over 50% of BTC positions (valued at $ 154 million) have been liquidated on the ByBit exchange. Various analyzes of several exchanges indicate that the selling pressure is still present.

Therefore, the price of BTC may still suffer more losses and fall below its support level of $ 45,000. At the time of this writing, BTC is trading at almost $ 44.8,000. According to a Bloomberg crypto report, news of the falling share price of Chinese group Evergrande is also affecting the crypto market, especially altcoins.

Bloomberg Crypto News Report. Source: Twitter

The loss of the entire digital asset market today is estimated to be over $ 205 billion. Some analysts have estimated that Evergrande’s problems have spiraling effects beyond China. However, Mira Christanto, a senior executive at a large China-based analytics firm, said the situation was grossly exaggerated. She backed up her claims with a screenshot on Twitter that revealed the real estate giant’s debts aren’t the highest.

Mira Christanto Tweet. Source: Twitter

El Salvador again increases its holdings of BTC

Nayib Bukele revealed via Twitter that his country’s holdings are now 700 BTC following the acquisition of another 150 BTC. Bukele claimed that more than 1.2 million Salvadorans now have the Chivo crypto wallet on their mobile devices.

At the time Bukele tweeted, BTC was trading at $ 45.7,000, but it has since fallen to $ 43.3,000. El Salvador continues to face various issues regarding its adoption of BTC as its official currency. Many Salvadorans have expressed their dissatisfaction with the legal adoption of BTC by the authorities.

They expressed their displeasure by staging a protest during the country’s Independence Day celebration last week. Part of the protest took a turn for the worse as some newly installed BTC ATMs were destroyed during the protest. However, various reports claim that the number of BTC ATMs in El Salvador is over 250. America and Canada only exceed their ATMs.

Top BTC traders have identified a fractal on the long term BTC chart. They predict that the price of BTC could climb back up to $ 300,000 before the end of the year if this fractal is repeated. So, Bukele’s BTC buying efforts might well be worth it in the end.

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