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Bitcoin attempts recovery as Evergrande-led selloff eases By Reuters


© Reuters. FILEPHOTO: This illustration, taken on August 6, 2021, shows a representation of Bitcoin. REUTERS/Dado Ruvic/Illustration

By Anushka Trivedi

(Reuters) – Cryptocurrency prices bounced off 1-1/2 month lows on Tuesday as a heavy selloff overnight linked to concerns about a possible loan default by property developer China Evergrande eased slightly, but investors braced for more volatility.

The most well-known cryptocurrency and largest traded at $43,000 after recovering from a drop to $40,192 in the previous session. The cryptocurrency reached $52,000 for the fourth month on September 6.

Smaller rival ether, the coin linked to the blockchain, rose 1% to $3,012 after falling below $3,000 for the first time since early August.

The week began on a volatile note in global markets. Investors sold off riskier assets after concerns that Evergrande’s problems could cause a downturn for China and the world economy.

Matthew Dibb chief operating officer, Stack Funds’ crypto index fund provider Singapore, said “We cannot take a very optimistic view just yet until we get to the next few days.”

This is sentiment driven at the moment, and the liquidity has been very low.” He added, noting that the best thing to do would be to sit back as contagion could continue to impact crypto markets.

This drop in cryptocurrency prices comes as institutional interest has increased and makes it more mainstream. Many investment banks are more bullish.

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