Crypto prices plunge $ 344 billion: why Bitcoin, Etheruem, Cardano, Solana fell

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An overnight panic sell-off triggered one of the biggest price drops in cryptocurrency history. And China is to blame.

The cryptocurrency took another substantial hit overnight, wiping $ 344 billion from the market in a single 24 hour after panicked buyers sold their tokens.

The major cryptos – bitcoin, ethereum and cardano, binance as well as the emerging Solana – all fell 12%.

At the height of the sell-off, bitcoin fell 9% to $ 42,669, while Ethereum also fell around 9% to a low of $ 2,940.

It was the lowest both coins have been since early August.

Both coins now sit slightly higher, at US $ 43,578 and US $ 3,042 respectively, at the time of writing.

Binance fell more than 10% while Ripple XRP fell 12%.

Even cardano and solana – which for the most part remained immune to further price cuts – both plunged around 10% at the height of the sale.

The market capitalization of the combined global cryptocurrencies fell by $ 2.62 trillion, or more than 10%, according to Forbes.

There is a clear and simple reason for the panic sell-off: China.

Evergrande, China’s second-largest real estate developer, is on the brink of collapse and has billions of dollars in debt as its lenders threaten legal action.

It owes $ 413 billion to its creditors and has contracts to build up to 1.6 million apartments.

Its stocks have plunged more than 80% this year into what an expert earlier called a “death spiral.”

In the past 24 hours, Evergrande shares have fallen 19%, the lowest in 11 years.

It has since recovered slightly, closing 10.2% lower in the Hong Kong market on Monday.

Jonas Luethy of digital asset broker GlobalBlock told Forbes he believes the sale of the cryptocurrency is because panicked digital coin holders fear the collapse of Evergrande will affect a larger market. .

September is not shaping up to be a good month for cryptocurrency.

This is the second time digital coins have taken a huge leap forward, and for a completely different reason.

Earlier this month, the price of bitcoin fell 10%, which had effects on other cryptocurrencies such as Ether and Binance.

The massive September 7 price crash came as El Salvador became the first country to introduce bitcoin as legal tender.

While the country’s sweeping move initially bolstered the market, it quickly caused bitcoin to drop after the country had to suspend digital wallets due to an issue.

Ethereum, cardano and binance recorded even bigger drops than their bitcoin counterparts.

All three digital coins plunged between 13% and 18% earlier this month.

Read related subjects: China

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