Seeking Alpha
2021-09-20 13:48:22

Marathon Digital, Riot, Grayscale, among Bitcoin proxies drop amid Evergrande crisis

Cryptocurrencies tumble along with global financial markets on Monday as Chinese property developer Evergrande collapses, potentially spreading to other indebted property companies as well. Bitcoin (BTC-USD) swoons 7.7% in the past 24 hours to $43.7K, while Ethereum is off by 9.2% at $3K; Binance Coin ((BNB-USD -9.4%)), Cardano ((ADA-USD -8.7%)), Ripple ((XRP-USD -12.7%)), and Solana ((SOL-USD -10.6%)) are all deep in the red. It appears the $3K level for Ether (ETH-USD) has served as solid support thus far, but still declined to its lowest point since mid-August. The trade-weighted U.S. dollar gains with the 10-year U.S. Treasury yield gapping down to 1.32%. This dynamic along with a selloff in risk assets shouldn't be surprising since the U.S. dollar still serves as the world reserve currency; historically, dollars are in demand amid risk-off events. Some stocks that act as a "proxy" to Bitcoins' (BTC-USD) price action are also plunging, including: Marathon Digital Holdings ((MARA -5.1%)),

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