Daily Digest 9/20
Insight on the biggest news and charts that provide context for whats going on in the market today.
Crypto Prices Plummet Amid Global Market Fears
The Evergrande situation has also spilled over to the crypto markets causing many projects to drop in price by 10% + in recent days.
El Salvadors president doubled down again by buying the dip again snagging over 100 more BTC. Many influencers on twitter like Tyler Winklevoss and Anthony Pompliano have also taken the opportunity to let us know we should buy the dip.
“Evergrande reportedly owes money to around 171 domestic banks and 121 other financial firms,” said Mattie Bekink of the Economist Intelligence Unit. If this can not be solved by Evergrande it can end poorly for Chinas economy.
China Property Fear Spreads Beyond Evergrande, Roiling Markets
Along with Evergrande other big names in Hong Kong real estate, like Henderson Land Development Co., have seen a massive sell off that hasn’t happened since last year from the Covid crash.
“ The price action across several asset classes in Asia today is horrendous due to rising fears over Evergrande and a few other issues, but it could be an overreaction due to all of the market closures,” said Brian Quartarolo, portfolio manager at Pilgrim Partners Asia.
Hang Seng Property index dropped 6.7% and Henderson Land dropped 13%. THE S&P 500 index futures has also dropped 1.2%. FTSE China A50 Index in Singapore is 3.2% as well.
With all the worry and talks over the possibility of an economic crisis in China the sentiment has started to swing slightly negative for the stock markets globally taking the crypto market with it.
While the sentiment is falling for all markets at the moment it is also important to note that BTC price has held up well for today at least.
Open interest is also taking a hit today. It shows that the market has started to swing to the side of fear after a nice string of euphoria. Low open interest and falling prices are an indication of fear in the market.
This change can also be attributed to a large amount of liquidations that took place because of the sudden price dip.
The top trending words for the day also indicate that all the talk in the crypto space at the moment is about Evergrande and China.
Social media is one of the best ways to get to the bottom of what exactly it is that's moving the market but it is not always as clear as today's news. It is important to always find the right sources and DYOR on top of it.