Due to the imminent bankruptcy of Evergrande, Bitcoin’s flash crash wiped out more than $200 billion from the crypto market

The Bitcoin exchange rate has fallen to its lowest level since early August. After being moderately bullish over the weekend, the market fell sharply on Sunday night.

The digital currency is responding to the impending bankruptcy of the Chinese real estate giant Evergrande, and seems to be paying attention to regular stock exchanges around the world. The incredibly rapid crash wiped out more than 200 billion U.S. dollars from the crypto market, not only affecting Bitcoin, but all other cryptocurrencies seem to be on a downward trend, and there is no real sign of recovery.

The value of Bitcoin has fallen by more than 8% in 24 hours.according to CoinMarketCap, The bitcoin exchange rate was 37,000 euros on Monday and dropped to nearly 36,000 on Tuesday afternoon. Two weeks ago, on September 7th, one bitcoin was worth more than 44,000 euros.

Bitcoin does not always move with the stock exchange, but it does look like it does now. This may be due to the increasing integration of digital currencies into global financial markets.

EvergrandeAs China’s second largest real estate group, the company is facing huge debts of more than 300 billion euros. Investors are worried that the upcoming bankruptcy may have a domino effect on the Chinese real estate market. There is also a high probability that the debt will never be paid off.

Evergrande’s troubles began earlier this year, when the Chinese real estate giant desperately needed cash, and it asked its employees a question that sounded more like a need. Employees who want to keep bonuses must provide Evergrande with short-term loans. This pressure makes many employees lend money to the company from their friends and family. The workers even borrowed money from the bank. But then Evergrande suddenly stopped repaying the loan.

Last week, when hundreds of employees gathered outside the company’s offices across China to protest, the chaos ended, joining the ranks of dissatisfied home buyers. The workers demanded a refund of their money.

Evergrande has now become the company with the most debt in China. It owes money to lenders, suppliers and foreign investors. It owes buyers for unfinished apartments and has accumulated more than $300 billion in unpaid bills. Evergrande faces lawsuits from creditors, and its stock price has fallen by more than 80% this year.

If Evergrande is unable to pay off its debts, this will be a real problem for hundreds of financial institutions borrowing from the group, and the world may face another debt crisis.Worried investors are paying close attention to whether Evergrande can achieve their wishes Payment of bond interest due, This is coming Thursday.

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