The Market Is Recovering, Again. But Why? By DailyCoin
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The Market Is Recovering, Again. But why?- Fears over Evergrande’s debts have been pushed aside.
- The US Federal Reserve is continuing its monetary policies.
- Bitcoin seems to be currently the most in-demand cryptocurrency.
- Over $3,000 was added in just 24 hours.
- Many currencies saw an increase in value between 10-20%.
With a gain of more than 6% per day, the crypto market cap looks optimistic and is almost back at $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. Investors in crypto feared that the real estate company could go bankrupt, leading to financial market declines.
However, the Chinese government committed to inject almost $19 billion into the banking system to cover Evergrande’s debts. This real estate giant holds 4 percent of the world’s property and pledged to make the repayments before the deadline. Financial investors were calmed by the news, which led to an increase in crypto market capital.
“Rescue of Evergrande has resulted in a positive economic outlook,”
experts from Crypto Global Management exclusively told DailyCoin.
The US Federal Reserve has confirmed that it will continue to maintain its monetary policy and won’t raise interest rates. The concern about the US Federal Reserve’s tapering decision has also been postponed. Bitcoin prices have recovered after the remarks of Jerome Powell.
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.
- As debt repayment deadlines near, Evergrande could still be facing financial difficulties.
What are the reasons you should care?
Financial occurrences can have a significant impact on the cryptocurrency market. Financial occurrences can have a significant impact on the cryptocurrency market.
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