Pro: Evergrande Group chapter 15 'indirectly influenced Bitcoin sentiment'
In a surprising turn of events, the recent developments surrounding the Evergrande Group's Chapter 15 filing have reverberated beyond traditional finance, indirectly influencing the sentiment around Bitcoin (BTC) and the cryptocurrency market.
Around 9:35 pm UTC on August 17, the price of Bitcoin plummeted by 8% in just 10 minutes. This sudden drop had a ripple effect on the broader cryptocurrency market, leaving crypto enthusiasts puzzled.
Over the next day, the crypto markets saw a substantial sell-off, causing Bitcoin to hit a two-month low, falling over 8% to below $25,659. Additionally, ether also experienced a decline, reaching its lowest point since March at $1,576.
The recent market drop has sparked various theories, but there is no consensus on its cause.
In an email, Rebecca Jones, CEO of Block3, shared a PR titled "COMMENT: 'Crypto market slide just short-term noise'" where Lucas Kiely, CIO of Yield App, believes the brief devaluation of the Chinese Yuan prompted by Evergrande Bankruptcy filing can be attributed to the crypto price dip.
Lucas Kiely commented on the recent BTC dip situation, noting that while rumors suggested SpaceX's partial sale of bitcoin holdings, various factors outside the cryptocurrency realm impacted the market sentiment.
These factors may encompass the rise in US bond yields and the US bankruptcy protection filing by Chinese real estate giant Evergrande. This has negatively affected the Chinese Yuan, indirectly affecting Bitcoin sentiment.
On August 17, China's Evergrande Group, the world's most indebted property developer, filed for Chapter 15 bankruptcy protection in a US court to safeguard its US assets during a restructuring attempt.
Evergrande, once China's leading property developer,
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