BTC holds $48K as Evergrande forms ‘Lehman Brothers moment’ for China
Comparisons to 2008 flow in as traditional finance receives a fresh blow from a firm “too big to fail.” Bitcoin (BTC) cautiously held $48,000 on Thursday as excitement brewed over a boost thanks to China seeing its “Lehman Brothers moment.” BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewTether executive reassures on EvergrandeData from Cointelegraph Markets Pro and TradingView showed BTC/USD trading near the $48,000 mark Thursday.While progress toward $50,000 was less decisive, analysts were broadly hopeful that a debt crisis at China’s second-largest real estate developer....
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In mid-September China’s Evergrande Group, the country’s second-largest property developer by sales, sparked fear in the global economy as the company’s market valuation plummeted to an 11-year low. Global economists have warned that if Evergrande defaults on its debts, it could start a credit contagion similar to the Lehman Brothers bankruptcy in 2007. So far, Evergrande has managed to dodge default on its loans three times in the past month, but Evergrande bondholder Deutsche Marktscreening Agentur (DMSA) seems to be preparing to file for bankruptcy against the real....
The biggest property developer in China, Evergrande, seems to be on the verge of collapse. They apparently owe $300B. Is bankruptcy on the table? There’s a better question, though. Is Evergrande the only company in the sector with these kinds of debts? Or is Evergrande just a symptom of a widespread disease? Also, how does this relate to Bitcoin? Do we present a valid case in the following article? Is this “China’s Lehman moment,” as the pseudonymous Bitcoin analyst suggests? Related Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course What we know for....
It’s been more than a decade since the financial crisis in 2007-2008 when Lehman Brothers, the fourth largest investment bank in the U.S., collapsed and filed bankruptcy. Close to 14 years later, Credit Suisse and Deutsche Bank, two of the world’s largest banks, are suffering from distressed valuations and the banks’ credit default insurance levels are approaching degrees not seen since 2008. Credit Suisse and Deutsche Bank Valuations Have Dive-Bombed — Investors Discuss the Systemic Risk to the Global Economy During the first week of October, the world economy....
The Chinese property developer will soon be a "non-event," one analyst says, with markets already shrugging off the story. Bitcoin (BTC) bounced from a second $40,000 retest on Sept. 22 as China calmed global market fears over Evergrande.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewChina keeps up Evergrande cash injectionsData from Cointelegraph Markets Pro and TradingView saw BTC/USD trading above $42,000 Wednesday, with bulls still defending the psychologically significant $40,000 mark.The mood remained buoyant among traders but macro still provided mixed messages, concerns....
The collapse of Evergrande and Chinese real estate developers underscores the promise of bitcoin, an asset disconnected from the global system.