Bitcoin losses continue to mount as the world reacts to the Evergrande selloff.
The price of Bitcoin has been steadily declining recently and, due to the issues surrounding Evergrande, might not be done falling just yet. The world’s most popular digital currency has fallen -2.68% in the last 24-hours and down -8.29% over the past week. At one point, on Sept. 21, that number reached -12%. The loss in value for bitcoin mirrors the broader market as the fears of Evergrande’s future permeates the landscape. Other coins to see significant declines include Cardano and Dogecoin, each falling more than 10%.
The issue surrounding Evergrande, China’s second-largest property developer by sales, is that it cannot pay back massive loans. The real estate giant has claimed $300 billion in liabilities and, as a paper from the end of 2020 shows, the company has just $32 billion in assets. This means that Evergrande is in danger of defaulting with just 10% or so of its total liabilities on hand. The company has been trying to find a way out from under its crushing debt by selling off some of its assets.