The broader crypto market cap has once again come under pressure in early morning trade on Monday, following a slight recovery from last Saturday’s massacre. At the time of writing, the total cryptocurrency market capitalization was $2.23 trillion, down 4.5 percent.
Bitcoin and the top-ten altcoins are down anywhere between 3-10%. However, Terra’s LUNA which recently made an entry in the top ten crypto-list has corrected the most at 18%.
The Sell-off in Asian Stock Markets Has Created Headwinds
The present volatility in Bitcoin and the broader crypto industry coincides with a significant sell-off in Asian stock markets in early trading hours on Monday. The Hang Seng Index in Hong Kong has fallen more than 1.3 percent in early trading hours, with tech stocks sliding higher. JD.com’s stock has increased by more than 5%, while Tencent’s stock has increased by more than 1%. Alibaba was the biggest loser on the Hong Kong index, with a drop of over 8%.
Evergrande, a Chinese property developer, had its stock plummet 11% in Monday trading. Evergrande will almost certainly be kicked out of the China Enterprises index. Evergrande said it received a $260 million debt payback demand in a filing with the Hong Kong market.
“If the Group is unable to meet its guarantee commitments or certain other financial obligations, creditors may demand that repayment be accelerated,” it stated.
The Nikkei in Japan was similarly down 1%, while the Topix was down 0.79 percent. At the same time, the Kospi index in South Korea was down 0.57 percent.
This was enough to increase the pressure on the crypto market cap as a whole
Crypto markets, as we all know, have primarily followed the stock market’s trend. When there is uncertainty in the global economy, investors prefer to relocate their money to safe havens, which causes cryptocurrency prices to fall.
While some market professionals have advised investors to buy on the dips, it will be interesting to watch whether the current correction is long-term or only temporary.
