Chinese real property giant Evergrande has defaulted on its debt payment, and fear of company’s payment default has resulted in an unintentional drop in financial markets across the globe.
There was a belief that crypto market downfall was caused by investors rush to liquidate their crypto assets due to concerns of global financial market fall.
However Central Bank of China has put 120 billion Yuan or 18.6 billion dollars to their financial system with the intention of rescuing Evergrande.
China's central bank injects 120 billion yuan ($18.6 billion) into the banking system after concern over a debt crisis at Evergrande roiled global markets https://t.co/U75QYOkie6
— Bloomberg Economics (@economics) September 22, 2021
A failure of Evergrande could cost China a lot and numerous specialists have predicted China will do everything it can to stop Evergrande from falling and their predictions seem to be true. Since Evergrande is getting a rescue from second strong economy of the world, the cryptocurrency market may see reversal from bearish towards bullish.
Sorry to be the guy who asks the awkward question but… when can we expect to see China bailout Evergrande and pump the market?
— The Wolf Of All Streets (@scottmelker) September 20, 2021
Historical data suggests that the final quarter of year has proven to be positive for the crypto market, which means the start of October could be a good time to help the market get back in its bullish path.
3 Last two bull runs saw sell offs in July following massive runs, both also saw sell offs in September, exactly as we are seeing in 2021. In both previous runs #bitcoin went on for a parabolic yearly finish. history doesn't repeat, but it sure does rhyme. pic.twitter.com/07wN03cWPd
— Lark Davis (@TheCryptoLark) September 22, 2021