Bitcoin prices have fallen below $ 45,000. The drastic 8% change can be attributed to Chinese developer Evergrande’s $ 300 billion debt, analysts said. While there is no direct link between the real estate developer and the cryptocurrency, many analysts suggest that the problems in the Chinese real estate market could trigger a crypto crash, as it would lead to risk aversion among Investors. However, others see this as an opportunity – the President of El Salvador tweeted to his supporters that the country had bought an additional 150 Bitcoins, and added that “buy the drop” is presidential advice.
“This [El Salvador’s purchase] shows that while the market will undoubtedly fluctuate, crypto will still be a sought-after asset. When the market goes down, the only way is to go up, ”said the CoinDCX research team, reacting to the markets today.
Nonetheless, as investors worried about Chinese real estate stocks voiced their concerns, they moved and traded their assets in other forms, resulting in market instability. The world’s most valued crypto Bitcoin on Tuesday crashed 6.39% and started trading at Rs. 34,03,511 ($ 46,219.68). Bitcoin had closed at Rs. 36 35,907 ($ 49,375.62) earlier. In recent days, Bitcoin exchange rates appear to have fallen to the lowest since early August 2021.
Additionally, Ethereum which was trading at Rs. 2,560,011 ($ 3,476.63) on September 20, also down 6.20%. Ethereum’s current value is currently Rs. 2,59,564 ($ 3,253.28).
As for the memes-based Dogecoin, which had seen a slight increase in value last week, a marginal trough was recorded. The cryptocurrency fell 6.57%, bringing its exchange rate to Rs. 16.64 ($ 0.23)
On the other hand, Tether and USD Coin stablecoins recorded marginal growth of over one percent each.
According to digital asset manager CoinShare, the influx of cryptocurrencies amounted to $ 41.6 million (over Rs. 306 crore approximately) for the week ended September 17.
While Bitcoin transactions represented capital worth $ 15.3 million, Ethereum products generated $ 6.6 million in transactions last week.