Finance

How Evergrande’s woes are hitting cryptocurrencies

Bitcoin and other cryptocurrencies slumped Monday as assets of all shapes and sizes were caught up in a wave of selling brought on by contagion fears from the mounting problems at embattled property giant China Evergrande Group.

Bitcoin, the world’s largest cryptocurrency, dropped 6.63% to $44,979. It dropped to as low as $44,523 over the past 24 hours. Despite Monday’s slump, Bitcoin has risen more than 55% so far in 2021.

Ethereum, the second-largest cryptocurrency, was down 8.14% at $3,146.

Evergrande, the world’s most indebted developer, owes more than $300bn, but Chinese authorities have warned banks the company  won’t be able to pay debt obligations due Monday, according to reports.

Evergrande said Sunday it has begun repaying investors in its wealth management products with real estate.

Futures contracts linked to the Dow Jones Industrial Average fell 519 points, or 1.51%. The blue-chip index fell 166 points on Friday to close at 34,585.

S&P 500 futures dropped 1.28% and Nasdaq futures slumped 1.01%.

Stocks in Hong Kong finished Monday with a loss of 3.3%. Markets in China and Japan were closed for a holiday.

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This article was published by Dow Jones Newswires

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