Bitcoin (BTC) opened the week with an 8% collapse that took it to hit lows close to USD 42K. The leading cryptocurrency and the rest of the altcoins felt the general hit in all the markets of the world from the delicate situation of one of the largest companies in China. As of press time, the price of BTC is $ 44,112.
China Evergrande, one of the largest real estate companies in the world, registered a new 10% drop in the Hong Kong market, and already accumulates a drop of 85% so far this year. The firm registers a debt of 300 billion dollars, and investors fear that it is a case similar to that of Lehman Brothers in 2008, where the default of a debt triggered a global crisis.
While specialists explained that the fall of BTC was due to a correlation with traditional markets, many bitcoiners did not miss the opportunity to buy the fall. One of them – the one that most caught the attention of the crypto community – was Nayib Bukele, president of El Salvador.
The Central American leader announced on his Twitter account that he bought another 150 BTC from state reserves , and El Salvador already has 700 BTC in its reserves. Two weeks ago, the leading cryptocurrency is already a legal tender in the country, and the government tries to expand its adoption among the population day by day.
Several analysts have explained that the price of BTC has grounds to imagine a quick recovery. On the one hand, during the last months a strong support has been built above USD 44K, and on the other hand the whales are in the middle of the accumulation period.
The rest of the crypto market also had dramatic declines. Ether (ETH), the leading altcoin, is down 7% and is trading just above $ 3,100. Cardano (ADA) and Litecoin (LTC) are down to the same extent and their price is $ 2.17 and $ 162, respectively.
Binance coin ( BNB ), XRP, and Bitcoin cash ( BCH ) plummeted more than 10% and trade at $ 374, $ 0.94 and $ 551 respectively. Dogecoin ( DOGE ) fell 9% to 10th on the chart. Cryptocurrencies with the most market capitalization. Currently, it is trading at $ 0.21.