- Fears over Evergrande’s debts have been pushed aside.
- The US Federal Reserve continues its monetary policy.
- Cardano currently seems to be the most trending cryptocurrency.
- Bitcoin went up by over $3,000 in the last 24 hours.
- Many currencies increased in the 10-20% range.
The crypto market cap is looking optimistic with a rise of over 6% in a day and its market cap almost back to $2 trillion. The rise in crypto prices was partly a result of Evergrande’s debt repayment plan and the US Federal Reserve’s announcement that it would continue to increase Treasury security holdings.
Earlier, cryptocurrency had plummeted due to Chinese Evergrande’s real estate debt crisis. Crypto investors feared the possible bankruptcy of the real estate firm, which could also lead to a decline in financial markets.
However, the Chinese government committed to inject almost $19 billion into the banking system to cover Evergrande’s debts. The real estate giant, which owns 4% of all global property, pledged to pay off the debt before the deadline. The news calmed financial investors and caused an increase in the crypto market cap.
“Rescue of Evergrande has resulted in a positive economic outlook,”
experts from Crypto Global Management exclusively told DailyCoin.
As for the news from the US Federal Reserve, the central bank has committed to continue its monetary policy, and will not raise interest rates yet. The concern about the US Federal Reserve’s tapering decision has also been postponed. The comments from Chairman Jerome Powell led to the price recovery of Bitcoin and Ethereum.
The US Federal Reserve continues to print more money, which has also influenced Bitcoin’s price rise. Scott Conger, the mayor of Jackson, TN, believes that cryptocurrency is “definitely the future monetary system.”
The change in the market on September 23 resulted in price gains for the top 200 cryptocurrencies, excluding stablecoins.
On The Flipside
- The flash crash in Bitcoin price earlier this month damaged the market by $200 billion, but now the market is quickly recovering.
- Evergrande might still face financial problems as debt repayment deadlines approach.
Why You Should Care?
The cryptocurrency market is affected by financial occurrences. A bankruptcy by a large global company or a decision made by the central bank influences the crypto market cap.