The cryptocurrency has bounced to $43,000 from the 1-1/2-month low of $40,200 reached early today, with futures tied to the S&P 500 signaling a risk reset with a 1% gain.
Fears that cash-strapped Chinese property giant Evergrande would default on its interest payments rocked global markets on Monday, sending bitcoin, S&P 500, and growth-sensitive risk assets lower. Evergrande’s Chairman Xu Jiayin sent a letter to 125,000 employees on Monday, saying the company would soon “walk out of the darkness.” The company’s real test lies ahead as $83.5 million interest payment is due on Thursday, and another $47.5 million payment is due on Sept. 29. A default could bring another round of panic selling in risk assets.
Some experts are worried that an impending drawdown in fiscal spending would lead to an economic slowdown in the coming quarters and weigh over risk assets. According to the Wall Street Journal, the U.S. government could run out of cash and hit the debt ceiling between mid-October and mid-November. On Sunday, U.S.
According to Katie Stockton, Founder, and Managing Partner of Fairlead Strategies, said in a weekly research note published late Monday “The long-term uptrend still has a hold on bitcoin, with our monthly indicators pointing higher, putting short-term volatility into a bullish context,”
When the pullback matures, we will turn our attention back to the recent peak near $52,900 as a minor hurdle to all-time highs,” Stockton added.
The 200-day moving average at $45,813 may offer resistance ahead of the Sept. 18 high of $48,825.