Bitcoin Falters Amid China's Evergrande Crisis... Plummets to 53 Million Won Range

Maximizing Risk Asset Aversion Sentiment
Robinhood Preparing Digital Wallet Function

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Bitcoin, the leading cryptocurrency that had been hovering around 58 million KRW, sharply dropped to the 53 million KRW range. This is interpreted as cryptocurrency, a risky asset, being shaken amid growing bankruptcy concerns over China’s largest real estate developer, Hengda Group (China Evergrande Group).

According to the domestic cryptocurrency exchange Upbit, as of 5:23 PM on the 21st, Bitcoin recorded 53.13 million KRW, down 1.24% from the previous day. It had risen to 58.8 million KRW on the 19th but fell sharply for three consecutive days, including a 7.20% drop the day before. On the same day at 9:23 AM, it even fell to 51.01 million KRW.

The spread of risk-averse sentiment led to the sharp decline in cryptocurrency. According to the US economic media CNBC on the 20th (local time), as the global stock market plunged, investors tried to avoid risky assets, and Bitcoin prices began to fall. In fact, on the previous day, the US cryptocurrency exchange Coinbase and MicroStrategy, the private company holding the most Bitcoin, fell by 3.53% and 4.22%, respectively. Cryptocurrency mining company Riot Blockchain also plunged 6.04%.

As the possibility of Hengda Group’s bankruptcy increased, risk-averse sentiment also grew. Hengda Group’s debt, which has been raising bankruptcy concerns since this spring, is known to be about 1.97 trillion yuan (approximately 360 trillion KRW). Additionally, Hengda Group must repay interest amounting to 83.5 million USD (about 98.864 billion KRW) by the 23rd. Without support from the Chinese government, Hengda Group is highly likely to go bankrupt, raising concerns that it could lead to a financial crisis.

[Image source=AP Yonhap News]

Meanwhile, the US stock trading application Robinhood is preparing a digital wallet function for cryptocurrency trading. According to US economic media Bloomberg on the 20th, a waiting list for users to register the cryptocurrency wallet function was found in the beta version of Robinhood’s iOS app.

Currently, customers can trade cryptocurrencies through Robinhood, but only via dollars. If the cryptocurrency wallet is developed, consumers will be able to trade cryptocurrencies directly without converting them into dollars and manage all cryptocurrencies in one place. Robinhood app customers have long demanded the release of a digital wallet that supports cryptocurrency deposits and withdrawals.

This content was produced with the assistance of AI translation services.