2024

Bitcoin

Impact

<p>The post <a href="https://coinpedia.org/news/evergrande-liquidation-could-trigger-potential-global-crisis-boosting-crypto-market/">Evergrande Liquidation Threatens to Trigger Massive Global Crisis</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p><a href="https://coinpedia.org/news/is-evergrande-the-rationale-behind-the-historic-market-crash/">China Evergrande Group</a> faced a pivotal moment in court as it sought approval for its debt-restructuring plan. Unfortunately, the court’s decision on Monday mandated the liquidation of the real estate powerhouse. This development not only intensifies the real estate crisis but also casts a shadow over the world’s second-largest economy.</p> 
<p>With Evergrande’s value plummeting by over 90 percent in the past year, the outlook appears challenging for a spectrum of investors, from banks to property buyers and fellow real estate entities. Adding complexity, the Chinese government is grappling with negative inflation, currently around -0.3 percent.</p> 
<h2 class="wp-block-heading" id="h-understanding-evergrande-s-debt-by-the-numbers"><strong>Understanding Evergrande’s Debt: By the Numbers</strong></h2> 
<p>To grasp the scale of the Evergrande crisis, consider this: the company’s debt surpasses four times the Gross Domestic Product (GDP) of <a href="https://coinpedia.org/news/el-salvadors-bitcoin-investment-nets-12-6-million-in-profits/">El Salvador</a> and equals the combined debts of Chile, Romania, and Finland. The fallout extends beyond financial institutions; Evergrande, a significant employer, directly and indirectly impacts countless livelihoods. Additionally, the global supply chain faces disruptions as the company sourced building materials from various countries.</p> 
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   <p lang="en" dir="ltr">It's not just Evergrande. Another one of China's biggest real estate developers, Country Garden, is in big financial trouble. <br>Bloomberg has reported that BlackRockBLK, Allianz, Fidelity &amp; UBS all have exposure in Country Garden. <br><br>From <a href="https://twitter.com/InvezzPortal?ref_src=twsrc%5Etfw">@InvezzPortal</a> <br><br>"Country Garden is in a… <a href="https://t.co/FyzNg9ZX6V">pic.twitter.com/FyzNg9ZX6V</a></p>— kristen shaughnessy (@kshaughnessy2) <a href="https://twitter.com/kshaughnessy2/status/1751926492580233458?ref_src=twsrc%5Etfw">January 29, 2024</a>
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<p>Read More: <a href="https://coinpedia.org/news/peoples-bank-of-china-rrr-cut-expected-to-boost-bitcoin/">People’s Bank of China Pumps $139 Billion: RRR Cut to Boost Crypto!</a></p> 
<h2 class="wp-block-heading" id="h-harsh-lessons-learned">(Harsh) Lessons Learned </h2> 
<p>The collapse of Evergrande serves as a significant lesson for investors who favored real estate over digital assets like Bitcoin. As the real estate giant falters, Hong Kong-based Harvest Global Investment, a leading fund manager, takes a strategic step by applying to launch spot Bitcoin exchange-traded funds (ETFs). This move hints at a rising demand for digital assets in the region.</p> 
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   <p lang="en" dir="ltr">While some shivered with fear during the recent price correction, <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> whales were accumulating more <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a>! <br><br>Around 67 new entities now hold 1,000 <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> or more, marking a 4.50% increase in two weeks. <a href="https://t.co/tje3fhznRR">pic.twitter.com/tje3fhznRR</a></p>— Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1752237851255689674?ref_src=twsrc%5Etfw">January 30, 2024</a>
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<p>Despite short-term market turbulence caused by profit-taking and recent Bitcoin sell-offs by <a href="https://coinpedia.org/news/bitcoin-btc-price-to-take-deep-plunge-matrixport-makes-bold-predictions-at-36k/">Grayscale Investments</a>, on-chain data reveals active accumulation by Bitcoin whales. </p> 
<p>Did You Know? <a href="https://coinpedia.org/news/justin-sun-predicts-china-to-join-the-crypto-etf-race/">Justin Sun Predicts China To Join The Crypto ETF Race</a></p> 
<p><strong>What are the potential ripple effects of Evergrande’s liquidation?</strong> <strong>Tell us what you think.</strong></p>

Evergrande Liquidation Threatens to Trigger Massive Global Crisis

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