Opportunities for Bitcoin (BTC) as Evergrande defaults on dollar debt; Terra (LUNA) roars

Evergrande, Opportunities for Bitcoin (BTC) as Evergrande defaults on dollar debt; Terra (LUNA) roars
Opportunities for Bitcoin (BTC) as Evergrande defaults on dollar debt; Terra (LUNA) roars.

Key Takeaways:

  • Bitcoin price continues to struggle slightly below $50,000.
  • Panic in financial market over Evergrande dollar debt.

NIGERIA (CoinChapter.com) — As Bitcoin continues to struggle to retake the $50,000 resistance level, analysts have predicted a bullish run for the number one cryptocurrency amidst the Evergrande dollar debt. In contrast, scores of altcoin have plunged, and others have surged.

By market capitalization, Terra leads the surge among top altcoins surging to seal its place among the top 10 cryptocurrencies.

Bitcoin stalls near $50K

After the sudden crypto crash over the weekend, Bitcoin has yet to make any significant gains and overcome the coveted $50,000 level decisively.

Bitcoin daily price chart. Source: TradingView
BTC/USD daily price chart. Source: TradingView

The cryptocurrency managed to move above the coveted level days back, surging to $52,000 until bears regained control of the market, plunging the price to $50,000, and on Wednesday, they drove it further down below $49,000.

At press time, Bitcoin trades at $49,205 (CoinGecko) with its market capitalization beneath $950 billion and its dominance over the altcoins at 37.80% percent.

Amidst high volatility playing hard on Bitcoin, attributed to the Evergrande dollar debt default, new Covid variant, and other fears in the financial markets, analysts and enthusiasts have predicted a bullish sentiment for the number one cryptocurrency.

They note that BTC may plunge to $48,200 on the Chinese firm default, but Bitcoin would eventually outgrow these market uncertainties in the long term.

Evergrande dollar debt

Evergrande, one of China’s top property developers, failed to settle overdue interest payments worth tens of millions of dollars, increasing the likelihood of a disastrous default.

Reportedly, the property firm was due to pay $82.5 million on Monday following the expiry of a 30-day grace period, but no transaction had been made. The debt default may have a massive effect on Bitcoin price.

Evergrande currently has a debt pile that’s worth over $300 billion and is struggling to meet its commitments. If the firm fails to meet its debt obligations, it could lead to the entire company collapsing, sending shockwaves through the global economy and, in turn, a plunge in crypto and stock prices.

Moreso, in September, signs were obvious that the Evergrande crisis impacted Bitcoin as the number one cryptocurrency fell alongside the stock markets. Analysts have said a default would be comparable to when Lehman Brothers collapsed in the U.S.

Terra joins top 10 crypto coins

As Bitcoin st in the long-run struggles, altcoins have followed in the struggle over the past few days. For example, Ethereum dumped from above $4,600 to $3,500 during the Saturday crash but quickly bounced off and reclaimed $4,000. However, on a daily scale, ETH is down by 0.26% and stands slightly below $4,300.

Cardano, Polkadot, Shiba Inu, Matic are also slightly red since yesterday. In contrast, Binance Coin and Ripple have marked minor gains.

On the other hand, Terra (LUNA) has surged by more than 10% in a day, hitting levels $70, just a few dollars away from registering yet another all-time high of $78, according to CoinGecko. Moreover, the asset has entered the top ten largest cryptocurrencies by market cap.

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Evergrande, Opportunities for Bitcoin (BTC) as Evergrande defaults on dollar debt; Terra (LUNA) roars

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