Cryptocurrency prices bounced off 1-1/2 month lows. This is because a heavy selloff overnight linked to concerns about a possible loan default by property developer China Evergrande eased slightly. Bitcoin is the biggest and the best-known cryptocurrency. It traded around $43,000, recovering from a fall to $40,192 earlier in the session.
Smaller rival ether, the coin linked to the Ethereum blockchain, rose 1% to $3,012 after falling below $3,000 for the first time since early August. Global markets started on a turbulent note this week. This is after fears that Evergrande’s troubles could lead to a fallout for the Chinese. The global economies prompted a selloff in riskier assets. Matthew Dibb, chief operating officer at crypto index fund provider Singapore-based Stack Funds said that they can’t take a very positive view just as yet until they get through the next few days.
He added that this is purely sentiment driven and it is actually been off very low liquidity. And also, it would be better to wait on the sidelines as crypto markets will continue to be affected by the contagion. When institutional interest in the space rises, the drop in cryptocurrencies comes. This makes it more mainstream, with many investment banks taking a more bullish stance.