Bitcoin, Ethereum slump as broader market sell-off widens

by   |  VIEW 2709

Bitcoin, Ethereum slump as broader market sell-off widens

On Monday, Bitcoin, the original cryptocurrency, was tanked nearly 7.0 per cent as concerns over the potential fiscal fallouts of a likely collapse of Chinese real-estate giant Evergrande, had spooked investors, widening a broad-based sell-off wave into crypto assets, too.

On top of that, Ethereum’s blockchain network also had dealt a hefty blow amid growing investors’ angsts over consequences of a potential collapse of Evergrande, the world’s 122nd-largest group by revenues.

Adding further discontents, in the day’s broad-based sell-off in crypto assets came forth at a time, when institutional investors had begun to cash in on digital assets over optimism of a mainstream adoption and a swathe of major investment banks had stepped up forecasts for cryptocurrencies.

On a technical viewpoint, Bitcoin appeared to have lost a critical support at $44,000, while the world’s best-known digital asset might be set to test a $39,000 handle in a near term, suggested industry analysts.

Bitcoin loses ground amid angsts over Evergrande repercussions

Citing statistics, Bitcoin had tumbled to its lowest since August 7 at $42,453.97, however, had pared some losses on late-afternoon US trading hours and wrapped up the day 7.4 per cent lower to $43,745 after hitting a four-month peak of over $52,000 less than a couple of weeks earlier.

Bitcoin’s smaller rival Ethereum, in tandem, sank more than 10.0 per cent below $3,000 for the first time in more than a month and a half, while the digital asset linked to Ethereum’s new blockchain network was last trading 7.6 per cent down at $3,071.

Meanwhile, as crypto market cap had dipped as much as 10 per cent on Monday below $1.94 trillion from the weekend’s $2.17 trillion, a chief executive officer at Yield App, a fintech firm focused on DeFi (Decentralized Finance), Tim Frost said, “It's red, red, red across the board today as the cryptocurrency markets follow the downturn being seen in traditional markets as China battles a highly-contagious property market crisis”.