Rumors of China’s Evergrande Group hit the markets, fueling suspicions about the pace of global economic recovery; Crypto assets were not left out. In the period from September 19 to September 21, Bitcoin depreciated around 18%, as shown in the following chart.
The impact of the Evergrande crisis on the cryptocurrency market intensified when it was revealed that Tether (USDT), As the main stablecoin in the market, it played the role of Chinese companies among the assets used as support.
Although Tether’s issuers had previously denied exposure to the Chinese company’s debt, the Evergrande news contributed to the global crypto asset market collapsing more than $ 600 billion.
According to the research team at Transfero, which recently saw the upward movement of Bitcoin (BTC), even amid this scenario, the market reaction was positive.
The announcement of new impulses by the Federal Reserve Board (FED), responsible for US monetary policy and the $ 18 billion injection by Chinese authorities to curb Evergrande risk helped Bitcoin’s rebound, which surged back above the $ 42,700 support
“This is a good sign as there is a large concentration of trading volumes in this band. Depending on the upcoming news on Evergrande, the bulls are expecting Bitcoin to strengthen and it could move back into the $ 47,200 area, which it would be be positive movement “, emphasize the analysts from Transfero and state that the price in this scenario would remain above the MMS200 (moving average of the previous period of 200 days), which is indicated by a bullish signal.
Similar to the analysts at Transfero Rodrigo Batista, CEO of Digitra.com, pointed out that another aspect that contributed to the negative scenario in the cryptocurrency market was the re-declaration by the People’s Bank of China that cryptocurrency transactions are banned in the country and that regulators will pursue crypto companies.
“Any minimal possibility of not controlling capital outflows displeases the country’s organs. So we had a bigger rush today, with a special mention of Tether, as USDT is the main escape point for the Chinese looking to access the cryptocurrency. “Market.”
Matias Bari, SatoshiTango’s CEO also noted that The problem, while not new, did help affect an already weakened market.
“China had already taken several steps in this direction. The news is not” new “. But it is another step. Personally, I think the bans are not good and China bans some things that we value: freedom, decentralization, little control by an organization. Hence, the fact that they ban cryptocurrencies only reinforces that those properties are real, “Bari said.
Marco Castellari, CEOBrazil’s Bitcoin, meanwhile, notes that China’s war on Bitcoin has not just begun, so the persecution will not end anytime soon.
“Since 2013, they have been trying to stifle the mining and trading of cryptocurrencies as it is an asset that is beyond central control and gives freedom to individuals, thereby jeopardizing the power of the Chinese government. Investors don’t need to worry though: a large proportion of miners have already emigrated from China to other countries, so the network shouldn’t have any impact on their security, ”he said.
And now, will Bitcoin go down or go up?
Given this turbulent scenario, Trasfero’s analysts warn that Another decline could occur in the futures market, bringing Bitcoin below $ 38,000.
According to the company, the volume of puts (put options) has risen sharply in the past 24 hours. Of the five most traded instruments, four are put options.
“If this downtrend continues in response to the escalating Chinese housing crisis, the bears could look for a possible decline and hit the support at $ 37,500,” he says
While the largest cryptocurrency in the market is going through turmoil, one crypto asset has emerged and reached its highest historical price this week and remains near the top 10 assets with the highest market value.
It is Avalanche (AVAX), another alternative blockchain to Ethereum (ETH) that aims for high scalability, with inexpensive transactions and is able to execute smart contracts quickly.
Avalanche recently received a $ 230 million investment to develop its ecosystem and DeFi projects on the network.
According to Transfero, the market reacted very positively to this investment round, whereby the AVAX token has been greatly upgraded in the last few weeks.
Besides, the update is “Apricot phase 4” Getting off to a successful start on the Avalanche blockchain can help keep the price down as 97.5% of validators updated their software prior to activation, indicating the willingness of the Avalanche community and validators.
Given the increasing competition in the Layer 1 ecosystem, Avalanche kept its fast run time and made sure it didn’t scale with user growth.
As a result, Avalanche’s Total Blocked Value (TVL) increased by USD 312 million in August to USD 2.6 billion as of September 14. The growing demand for projects on the blockchain network is key to the TVL rebound.
Anyone who is optimistic when it comes to crypto-active is the analyst who, as. is known @AltcoinSherpa which has set a price target of USD 100 for AVAX and believes in the growth potential of the Avalanche Network’s flagship DEX.
$ AVAX: $ 85 may offer temporary resistance, but I really consider $ 100 to be the area of greater resistance. I’m still in this 1 and in agriculture $ JOE.TO #AVAXTO pic.twitter.com/W1Fz0r3Mc6
to???? Altcoin Sherpa (@AltcoinSherpa) September 23, 2021
AVAX: $ 85 may seem like a temporary resistance, but I really see $ 100 as the area of greatest resistance. I’m still in this great 1 and farming.