Major cryptocurrencies fell more than 10% today amid a bearish week for the S&P 500 and a debt crisis from Chinese real estate giant Evergrande.
The flagship cryptocurrency asset, bitcoin, has largely avoided a decline over the past week, falling only 2.6% in the past seven days.
In the past 24 hours, however, it has fallen 6.9% to a price tag of $ 45,000. El Salvador President Nayib Bukele took the opportunity to suggest “buy the bottom of the wave“As the price of bitcoin continues to decline. Since El Salvador adopted bitcoin as legal tender on September 7, 2021, the price of the main cryptocurrency has fallen by almost 14%.
Other cryptocurrencies have seen much more dramatic price drops over the past week, as well as over the past 24 hours.
One of those cryptocurrencies is Solana, which has fallen 19.6% in the last week and 13.5% in the last 24 hours. Solana’s bad week is largely due to a 5-hour blackout, which Solana founder Anatoly Yakovenko explained to be due to bots.flooding the network“.
Ethereum has also fallen significantly – by around 8.3% during the week and over 9% in the past 24 hours. It’s not immediately clear why Ethereum has fallen in value in recent days, given that it recently crossed the $ 3,600 mark and Vitalik Buterin made the list of the top 100. most influential of Time.
However, Avalanche has made waves, reaching an all-time high of $ 65 and increasing 400% since the start of August.
Other struggling cryptocurrencies include Cardano and Dogecoin, which fell 18% and 12.8% respectively last week.
A look at global markets
The S&P 500 fell nearly 1% last Friday, and less than 75% of listed stocks closed above their 200-day moving average. According to Yahoo Finance, this ended the fourth longest streak since at least 1928.
The downturn in the global market also appears to have been spurred by fears over Chinese real estate giant Evergrande, entangled in a debt crisis that could jeopardize China’s growth prospects.
If Evergrande goes bankrupt, the economic consequences for China are incredibly dire. Mattie Bekink, of the Economist Intelligence Unit, reportedly told the BBC that “the financial benefits would be considerable“.
“Evergrande is said to be in debt to around 171 national banks and 121 other financial companies“, She added.