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Bitcoin falls 8%, to its lowest price in six weeks, due to risk aversion in the markets in the wake of Evergrande

On September 7, El Salvador became the first country in the world to have bitcoin as its payment currency.  Stock Photography.  EFE / Sascha Steinbach
On September 7, El Salvador became the first country in the world to have bitcoin as its payment currency. Stock Photography. EFE / Sascha Steinbach

This Monday, the cryptocurrency market accuses important downward corrections in the order of up to 12% and a strong selling volume, due to the negative effect of an international stock market that accompanies said fall and with a perceptible strengthening of the dollar against other currencies.

Highlights the 8% drop for Bitcoin, now negotiated below $ 44,000 for the first time since August 8. The virtual currency defends, in any case, an appreciation of 51% in the course of 2021, although it remains far from the historical maximum close to USD 65,000 reached in mid-April.

Bitcoin holds a market value of about $ 827 billion and accounts for nearly half of the turnover of all cryptocurrencies in circulation.

While Bitcoin is often called a safe-haven asset, the growing reality is that its price tends to decline amid wider declines in risk assetslike emerging currencies, stocks, and bonds. Also in the present round, drops between 1% and 2% are observed for raw materials such as grains and oil. Conversely, a winner in the midst of stock market uncertainty is the gold, amounting to 1%, at $ 1,765 an ounce.

The main cryptocurrency came to plummet up to 10% until the early hours of Monday and traded at $ 42,634, according to Coin Metrics. The broader cryptocurrency market is also in the red, with the Ether -the virtual emission of Ethereum- which fell by 12%, at $ 2,986.

World stock market indices are falling as investors fear to spread the risk of a restructuring in the Chinese real estate market, tied to the highly indebted developer Evergrande.

Volatility on global exchanges takes Bitcoin to its lowest price since August 8, although the virtual currency retains a 51% gain so far in 2021

The decline in cryptocurrencies comes as uncertainty about the regulation of stablecoins. The US Financial Stability Oversight Board may designate them as systemic risk, reported The New York Times over the weekend, which could subject them and their operators to strict regulation.

Investors also focus on the Federal Reserve and whether the US central bank will indicate its willingness to begin removing monetary stimulus from the economy.


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Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

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