COLLAPSE OF THE MOST IMPORTANT CRYPTOCURRENCIES IN THE WORLD / 250 BILLION DOLLARS EVAPORATE FROM THE MARKET DUE TO EVERGRANDE CASE.

Written by:Diomer Antonio Galán Rincón.

Bachelor's Degree.Public Accounting / MSc.Science of Higher Education.

A major event occurred today with the prices of the various cryptocurrencies tumbling (downtrend) at the start of the week, as widespread liquidation triggered by jitters over a potentially catastrophic debt default in China sent several of the blockchain's strongest cryptocurrencies to their lowest levels in more than a month.

It is important to note that the value of the world's cryptocurrencies plummeted to less than a minimum of more than 1.9 trillion dollars in the early hours of Monday morning, the percentage was almost 11% in less than 24 hours, representing a loss of more than 250 billion dollars, according to the cryptographic data website CoinMarketCap.

It could be known that in the face of market value losses, one of the cryptocurrencies that suffered the most in its price was bitcoin, which fell 9% to less than $42,669, while the prices of the other strong currency such as ethereum fell by almost 10% to a minimum of $2,940, thus marking each its lowest levels since the beginning of the month of August.

It is important to note that the sudden setback occurred after the shares of the Chinese real estate giant Evergrande, which has a significant amount of liabilities reaching more than $305 billion, hit their lowest level in more than 11 years, causing a stampede of liquidation flows, representing an imminent risk for the market in general.

Evergrande Real Estate, China's second largest developer, alerted banks last week that it would not be able to make the debt payments due this month, which caused the sharp fall in the sector. This information spread very quickly to the market as experts began to warn that its default could potentially create a Lehman moment, (bankruptcy of the investment and financial services bank, exposed to excessive risks such as mortgages would lead to its demise).

It is worth noting that increased regulatory scrutiny also impacted as a reason for the panic selling. It was also learned over the weekend that the world's largest cryptocurrency exchange, Binance, is currently under investigation by U.S. regulators, as it is alleged to be engaging in insider trading and market manipulation.

The increase in relation to what are known as non fungible tokens or NFT have contributed greatly to the crypto market to be able to decrease losses since the opening of regulations in China that caused almost 50% of the market drop at the beginning of May, although not yet fully recovered the an incentive for recovery for the future months.

To conclude, the booming market of smaller cryptocurrencies has attracted many small investors and this history has helped the mania to resolve the market corrections by almost 50%.

I hope you like my article and I would appreciate all your comments.

1.- https://www.larepublica.co/globoeconomia/bitcoin-y-ether-caen-a-medida-que-se-amplia-desplome-del-mercado-de-criptomonedas-3235345.