News from China slowed down the growth of cryptocurrencies
Bitcoin touched $57,000 in yesterday’s session, ending the day at +4.34% amid falling stock indices. The S&P500 was down 0.61%, losing all of its gains late in the day when news came about the default of Fantasia Holdings, a major real estate developer from China that missed a $200 million bond payment yesterday.
Virtually all Chinese developers are on the verge of bankruptcy; the downfall of one major player is enough to cause a chain reaction of defaults that could affect not only the construction industry, but also the financial sector.
The situation is similar to the problems of the American real estate market, which led to the global economic crisis in 2008. These predictions lead to stock sell-offs, which previously negatively affected the cryptocurrency market.