Yesterday Bitcoin (BTC) recorded a decline of almost 7% from a daily high of $ 50,795 to $ 47,306 before rebounding trading at $ 48,335 at the time of writing this article.
Not sure what invites Bitcoin price turmoil but the performance of this crypto king is linked to Evergrande’s ‘critical’ status.
What happen?
International credit rating agency Fitch has categorized Evergrande under "restricted default" status after the Chinese giant failed to pay interest this week.
Restricted default refers to a grade lower than the default.
This means Evergrade has default payments that have yet to be paid, but has yet to file for bankruptcy.
The definition from Fitch took place yesterday, and also had a negative impact on the price of Bitcoin.
The due date for the interest payment should have been last month. But due to Evergrande repeatedly failing to make payments, the date was extended to earlier this week, Monday.
Once again Evergrande is still failing with outstanding liabilities of over $ 300 billion (RM1.27 trillion).
Evergrande had previously said it did not have sufficient funding sources to pay its liabilities and was working to restructure the company's plan with offshore creditors.
It is unclear until when Bitcoin will be impressed with the Evergrande issue. Everyone is looking forward to it.
