Earlier today, Bitcoin saw a 2.75% decline due to disruptions in the Asian market. Indeed, the troubled Chinese real estate giant Evergrande has announced that it will abandon its restructuring plans. Given Tether’s exposure to the Evergrande Group, the debt restructuring could put significant downward pressure on Bitcoin.
The price of Bitcoin linked to the Evergrande situation?
This is what popular crypto analyst WhaleWire thinks in his analysis published this morning at 5:31 a.m.
We can actually see a peak in volatility at the drop in the price of Bitcoin this morning. This comes alongside a 24% drop in the Chinese stock market. Indeed, Real estate giant China Evergrande announced Monday morning that it would abandon its restructuring plan. This caused widespread concern in the Chinese stock market. The crypto industry has also seen disruption, and the BTC drops 2.75% after a very quiet weekend.
The crypto analyst explain the reason why this decision by Evergrande had an impact on Bitcoin.
“ Many believe that Evergrande could be the main paper backing Tether’s stablecoin. Despite Tether’s repeated refusals, …… investors are naturally skeptical.“
This would mean that Tether has large exposure to Chinese real estate company, who is currently in a precarious financial situation.
Then, WhaleWire also highlights the close relationship between Tether and Bitcoin. Indeed, Tether’s USDT represents around 70 to 80% of BTC trading volume, and is “regularly used to artificially manipulate its price. »
In short, we are witnessing a domino effect: Evergrande’s difficulty could affect Tether, and if Tether has problems, it could affect Bitcoin.
Crypto traders remain optimized
In accordance with this possibility of decline linked to Evergrande, RektCapitala renowned crypto trader, believes that the price of Bitcoin could close the month of September on a decline.
However, he explained in his analysis that the month of October could be positive for BTC. Indeed, current conditions seem to be similar to those of 2019. In October 2019, Bitcoin experienced an ascent of 10%, which could be the case for this year 2023. In this case, Bitcoin could reach $29,000.
On the other hand, Titan of Crypto estimated that Bitcoin could reach $48,700 before the next Halving.
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