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Evergrande fears spill over into crypto market collapse

2021.09.20 Adam James

The prices of cryptocurrency coins and tokens are hemorrhaging across the board.

The cryptocurrency market is in a state of collapse to start the week after its global capitalization dropped by 10.8% to under $2 trillion. The prices of BTC and ETH are down 8.2% and 9.8%, respectively, while many major altcoins are experiencing declines well into double-digit percentage territory.

The cryptocurrency market is a sea of red today as valuations drop heavily. Source: Coin360

With no apparent crypto-specific reason for the market-wide decline, most industry pundits are looking to China’s heavily indebted real estate company Evergrande’s teetering on the verge of default as the primary culprit. With more than $300 billion in debt pushing the world’s most indebted property developer into a state of near-collapse, global market participants are fearing something of a domino effect — and the cryptocurrency industry has not been spared.

Nevertheless, the negative market conditions did not stop El Salvador from buying the proverbial dip. In fact, the country’s president, Nayib Bukele, tweeted earlier today “We just bought the dip” by purchasing 150 additional BTC — bringing the country’s total holdings up to 700 BTC.

NFT Snapshot: pNetwork attacked for 277 pBTC

Adding insult to injury in the decentralized finance market today is cross-chain protocol pNetwork’s loss of 277 pBTC, the ecosystem’s wrapped BTC. Though details on the attack are scant, the project’s official Twitter account claimed that “an attacker was able to leverage a bug in our codebase and attack pBTC on BSC, stealing 277 BTC (most of its collateral).”

As of the time of this writing, no funds have been returned and no additional details — aside from the aforementioned Twitter thread — have been shared by the team.

Top altcoin gainers and losers: COVER bucks collapse

  • COVER/USDT +28.49%
  • ITC/USDT +7.31%
  • HDAO/USDT +6.07%
  • PROPS/USDT -20.22%
  • ANC/USDT -20.53%
  • YGG/USDT -20.93%

Though the wider cryptocurrency market is tanking, there are a few winners on OKEx — per the exchange’s default time settings. The biggest winner is DeFi token COVER, which is up roughly 30%. Otherwise, the only altcoins not experiencing losses on OKEx today are primarily stablecoins.

COVER is the top-performing altcoin on OKEx today. Source: OKEx

BTC technical analysis: 41,000 USDT in play

The price of BTC has plunged back down out of the wide resistance zone it had previously been attracted to. Currently, it is trading well below the four-hour ribbon of exponential moving averages, with all eyes now set on potential support around 41,000 USDT. Losing that area of support could mean that things might get very bad, very fast for the foremost cryptocurrency.

OKEx’s BTC/USDT 4h chart — 9/20. Source: OKEx, TradingView

ETH technical analysis: Fakeout into breakdown

ETHBTC has positively disrespected the descending triangle pattern it previously traded inside of by faking a breakout to the upside before immediately reversing straight back down — which subsequently led to a steady breakdown through the bottom of the triangle. 0.067 BTC is now firmly in play as an area of potential support.

OKEx’s ETH/BTC 4h chart — 9/20. Source: OKEx, TradingView

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.



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