The price of Bitcoin and other crypto prices slid on Monday, as ongoing worries over a possible default at Chinese conglomerate Evergrande Group shook global markets.
The price of Bitcoin fell 7.9% vs. a year earlier to $43,914. Ethereum lost 8.3% to $3,074. Cardano skidded 9% and Dogecoin 11%.
The drop for those digital assets — as well as markets broadly — came as Evergrande, a real estate giant in China, contends with mounting debt.
“Chief among investor worries has been Evergrande’s debt woes and its potential spillover on other property developers, lenders and other sectors — not only in China, but elsewhere too,” Fawad Razaqzada, analyst at ThinkMarkets, said in emailed commentary.
“Investors are not sure whether Chinese authorities will be able to contain the fallout from a possible disorderly collapse of the heavily indebted company,” he continued.
Evergrande’s debt has been estimated to be at more than $300 billion. The developer also has wealth-management and electric-vehicle segments, and other businesses.
The company had interest on loans due on Monday, but China’s government has warned banks they wouldn’t get it, according to reports. Evergrande also has millions in interest on company bonds due this week.
Rob Brewis, fund manager at Aubrey Capital Management, said it would take “a decade or more” to unravel Evergrande’s debt. That debt, he said, had been accumulating for years.
The price of Bitcoin and other crypto prices have taken hits this year, as China cracks down on crypto-related activity. U.S. regulators have also started paying more attention to the space.
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