Cryptocurrency holders are currently bracing for precipitous drops on the value of their portfolios, as the cumulative market value of cryptocurrencies has just bled the equivalent of $250 billion in less than 24 hours. The market downturn is being attributed to the Evergrande turmoil, which sparked concerns for a potentially catastrophic debt default in China, as well as upcoming investigations from the United States.
Evergrande, a Chinese real-estate giant, holds more than $305 billion in liabilities. This most recent crypto downturn is being associated with a massive market sell-off, with holders attempting to raise their liquidity (i.e. monetary value that hasn’t been locked in) in response to a sharp decline in Evergrande’s share price, which just plunged to its lowest level in 11 years.
Adding to the market’s instabilities are this weekend’s reports that U.S. regulators are gearing up to probe crypto trading giant Binance to root out money laundering and other illicit activity.