Prices of cryptocurrencies plunged on Monday as concerns over the spillover risk to the global economy from Chinese property group Evergrande's troubles rippled over to wider markets
Bitcoin, the world's biggest and best-known cryptocurrency, tumbled more than 8 percent to $42,453 (€36,193), its lowest level since 7 August before trimming some losses to trade down 7 percent. it hits near four-month high above $52000 (€44313) on September 6
A smaller rival either, the coin linked to the ethereum blockchain network, fell more than 10 percent below $3000 (€2556) for the first time since early August.
Why are Cryptos plunging ?
The Chinese property group Evergrande is facing a debt of $300 billion (€255.7) and possible collapse. On Monday the company's Hong Kong-listed shares slid around 20 percent. There is concern a collapse could disrupt many markets, including cryptos.
The loss in the value of cryptocurrencies comes at a time when institutional interest in the space has surged and some investment banks have ramped up their forecasts for cryptocurrencies in the coming months.
their fate seems a little tied to equities at the moment, and the price action is incredibly similar too, Said by CEO of forexxtra
Cryptocurrencies are also facing possibly facing a clampdown by US lawmakers and watchdogs, according to reports. Last week, the wall street journal reported the Biden administration is
"preparing an array of actions, including sanctions, to make it harder for hackers to use digital currency to profit from ransomware attacks"