[Asia Economy Reporter Bu Aeri] The cryptocurrency market has also been impacted by bankruptcy rumors surrounding Evergrande Group, China's largest private real estate company.
According to cryptocurrency information site 'CoinMarketCap' as of 2 PM on the 21st, Bitcoin was trading at $42,399, down 7.17% from the previous day. Its market capitalization also decreased by $797.5 billion. According to major foreign media, Bitcoin's price reportedly fell by more than 10% at one point during the day.
The sharp decline in cryptocurrency prices is interpreted as being influenced by concerns over Evergrande Group's potential bankruptcy. While global stock markets, including the New York Stock Exchange, were affected by the Evergrande crisis rumors, the cryptocurrency market also could not avoid the ripple effects.
Evergrande Group is China's largest private real estate company. As of the end of last year, its debt was reported to be 1.95 trillion yuan (approximately 350 trillion won). There are interpretations that Evergrande's bankruptcy could lead to a credit crunch in China's financial market. Evergrande's default could cause insolvency in banks and financial institutions within China's financial market, which could then spread to other companies' crises. There are concerns that this could lead to a China-version of the Lehman Brothers collapse.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
