The China Evergrande Group is a well-known name around the globe. It is the second-largest property developer in China, which is the most populated country in the world. Earlier today, news circulated that the Evergrande Group has avoided falling off from a potential debt cliff. This has certainly impacted the crypto market that has been seen to rebound in the last 24 hours.
Due to a few factors, the overall crypto market is still down for the week. However, the major digital assets in the market have seen a noticeable price surge this morning.
Digital currencies such as Bitcoin, Ethereum, Solana and Polkadot have taken many by surprise.
- Bitcoin is trading at $43,845 (at the time of writing)
- Ethereum is trading at $3,108 (at the time of writing)
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Evergrande’s Impact on the Crypto Market
Earlier this week, the cryptocurrency market was seen to falter due to the uncertainty that surrounded Evergrande’s ability to meet bond repayments. The crypto investors were deeply concerned about any kind of a domino effect that could cause a global financial crisis as seen in 2008.
However, to the delight of crypto investors, Evergrande announced yesterday that the company has successfully resolved one coupon payment.
The coupon was a Shenzhen-traded 5.8% bond due today that will mature in 2025. This news sent waves of positivity not only through the crypto market but the global markets as well. With this news, major companies such as Nasdaq, Dow Jones S&P 500 showed recovered quite evidently over the last 24 hours.
Even though this is positive news for the global financial markets, many are still waiting to see the details of the payment and how it will play out. The Chinese company still has to make an $83.5 million bond payment today and another $475.5 million on September 29th, 2021.
The price surges seen for the top cryptocurrencies have been remarkable and mentioned as follows.
- At the time of the news, Bitcoin saw a price surge of approximately 5%
- The price of Ethereum went up 9%
- Cardano’s price surged around 11% and reclaimed the third position
- Solana has seen a price increase of approximately 17%
- Polkadot has also seen a 17% increase in its price
Solana and Polkadot are the two digital assets in the top ten that have seen the biggest price surges in 24 hours.
What Should Crypto Investors and Traders Do?
People who have been in the crypto market for quite some time are familiar with its volatility. This means that the markets can shift at any time and be influenced by several factors. However, some people are willing to take the risk in order to reach the reward.
Trading or investing in digital currencies is indeed a risky endeavor, which is why it should be done carefully and after acquiring some helpful and relevant information.
At the moment, the crypto market has been influenced by the actions of the China Evergrande Group. While many consider the downtrend of the market to be over, nothing can be said with certainty right now.
However, if you are looking to step into the crypto space then make sure you take a look at some of the biggest crypto exchanges and choose a platform accordingly.
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