The woes of China’s iconic real estate behemoth Evergrande appear to have no end in sight, as Hong Kong stopped trading of Evergrande and many other property developer stocks earlier today. Evergrande is now on a sale binge to prevent going into default on its debt. With the sale of a half-stake in its property management unit to Hopson Development, the Chinese real-estate behemoth hopes to raise $5 billion.
Evergrande has over $305 billion in liabilities and is on the verge of causing another financial disaster like the 2008 financial crisis if it does not pay its bills. However, many believe China will not let the world’s largest property developer fail, evidenced by the Chinese central bank injecting over $20 billion into the banking sector following the Evergrande crisis last month.
Is Evergrande’s Loss a Blessing for the Crypto Market?
On a positive note, the crypto market began in October, surging more than 10% on the first day of the month, bringing total market capitalization to over $2.10 trillion. While the fourth quarter is expected to be an optimistic one, the Evergrande debacle may only serve to accelerate the company’s growth. Because of the 2008 financial crisis, Bitcoin was founded in 2009 to survive the downfall of the existing financial system. During the pandemic, BTC reached fresh all-time highs, demonstrating this.
The last quarter of 2021 could be the most positive, as concerns in the mainstream market prompt investors to seek better hedging assets, with Bitcoin now being the most popular option. BTC was trading at $47,703, down from a high of $49,130 earlier in the day. The top cryptocurrency is currently attempting to reclaim the $50K barrier as support, and if it succeeds, it may turn its attention to ATH.