Crypto Market Records Sharp Correction After Bitcoin (BTC) ATH, Here’s Why Evergrande is to Blame
Bitcoin (BTC) price topped $69K earlier today to record a new all-time-high, but fell sharply right after. BTC price fell to a daily low of $63,208 before recovering above $65K and currently trading at $65,145. The price correction was observed across the altcoins as well and the overalll crypto market valuation fell below $3 trillion.
The sharp price correction in the crypto market led to biggest liquidation in two weeks as more than $700 millions worth of lveraged positions got liquidated over the past 24-hours. Along with high liquidation the open interest in the Bitcoin and Ethereum market also recorded a sharp decline. BTC’s open interest dropped from the highest of $26.8 billion to $24.8 billion, and ETH’s open interest dropped from the highest of 13.6 billion to 12.7 billion.
There were many suggestions floating in the market that led to the sharp decline and millions in liquidation. Many belive a decline in the US stock market later flowed into the crypto market as well, while few other belive Evergrande’s loan payment conflict could have been a potential catalyst.
Did Evergrande’s Loan Payment Fiasco Led to Market Correction?
Evergrande, the Chienese real estate giant which is currently in $300 billion debt and on the verge of bankruptcy reportedly defaulted on a loan payment. Following which Deutsche Markt Screening Agentur (DMSA) announced that they are intitating bannkruptcy procedure against the real-estate giant. Bitcoin price started to retrace soon after this annoucement, making many belive it to be the real cause behind the market correction.
Just hours after DMSA announced it will intiate bankruptcy, a Bloomberg report claimed Evergrande hasn’t defaulted on its payment on 10th November.
contrary to what you may have heard ~on the internet~ Evergrande did not default today https://t.co/fsZPH8wFTG
— Allison McNeely (@allisonmcneely) November 10, 2021
Bitcoin price started to recover soon after the tweet and clarification and currently consolidating above $65K.