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November 29, 2022
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Guide & Analysis

Bitcoin price melts and loses $40K support with Evergrande financial panic

After starting a sharp devaluation in the week, the price of Bitcoin (BTC) continues to melt in the market.

This Wednesday morning (22), Bitcoin lost the important support of US$ 40 thousand, through the BTC/USD pair.

Although it returned to being quoted above US$42,000 shortly after losing support of US$40,000, the feeling of devaluation still persists in the market of cryptocurrencies.

In total, the price of BTC has dropped dramatically over the past seven days, with a devaluation of more than $9,000. Following the traditional financial market, cryptocurrencies andare experiencing a massive massive devaluation, caused by the “Evergrande Effect”.

Bitcoin dropped to the US$39,000 level

The market was surprised by the price of Bitcoin plummeting to the $39,000 level recently. According to CoinMarketCap data, in the last 24 hours the BTC registered a minimum of US$39,787.61.

Meanwhile, the highest Bitcoin recorded for the day was $43,225.71 before dropping the $40,000 level, which signals a variation of approximately US$ 3.5 thousand.

But, soon after losing the level of US$ 40,000 in the market, the price quickly faced a small recovery that made the BTC return to its value at around US$ 42,000, until the end of this Wednesday morning (22).

Evergrande effect

The traditional financial market was shaken by the “Evergrande Effect” that started last Monday (20). With the prospect of a default of US$ 300 billion by the Chinese giant Evergrande, stock exchanges around the world felt a huge impact this week.

In addition to the traditional market, the disruptive financial market was also indirectly affected by the “Evergrande Effect”. As a result, the main cryptocurrencies melted in the last three days.

This devaluation continued until Bitcoin was quoted below US$ 40 thousand, a value that had not been registered in the market since the beginning of August 2021. With a brief recovery on the day, now the BTC is quoted at US$ 42,596.43, as shown in the chart below.

Bitcoin price today (Source/CoinMarketCap)

While the BTC recovers the level of US$ 42,000, the company Evergrande presented an agreement to pay a domestic bond that will expire on Thursday (23).

The company’s initiative, which can repay US$83.5 billion in debt through Hengda Real Estate Group, is intended to calm the spirits of the traditional financial market, which could reverberate in a sense of appreciation for the cryptocurrencies.

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