{"id":52705,"date":"2021-11-11T11:38:55","date_gmt":"2021-11-11T09:38:55","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=52705"},"modified":"2025-09-03T11:33:39","modified_gmt":"2025-09-03T08:33:39","slug":"bitcoin-retreats-from-record-as-evergrande-default-fears-mount","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bitcoin-retreats-from-record-as-evergrande-default-fears-mount\/","title":{"rendered":"Bitcoin retreats from record as Evergrande default fears mount"},"content":{"rendered":"

On November 10, after an all-time high as it approached $69,000<\/a>, Bitcoin fell almost 9%, slipping below $63,000. CoinDesk linked this to rumours of a potential default by one of China’s biggest developers, Evergrande.<\/p>\n

By the end of the day, Associated Press<\/a> reported that some holders of the company\u2019s bonds did not receive interest payments after the end of a 30-day grace period following the due date.<\/p>\n

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\"Bitcoin
Schedule of Evergrande debt-service payments in October\u2013December 2022. Data: Bloomberg<\/a>.<\/figcaption><\/figure>\n<\/div>\n

The investor-protection agency Deutsche Markt Screening Agentur (DMSA) announced the initiation of bankruptcy proceedings against the developer and urged affected parties to join the process.<\/p>\n

\n

\u201cDMSA is preparing bankruptcy proceedings against Evergrande. The court will officially declare the company bankrupt; this is a matter of days,\u201d<\/em> said in a press release<\/a>.<\/p>\n<\/blockquote>\n

A formal recognition of a technical default could trigger cross-default on other obligations totalling 2 trillion yuan (~2% of China\u2019s GDP)<\/a>. The developer\u2019s troubles have already strained the debt market and posed challenges for the property sector. This would slow the world\u2019s second-largest economy.<\/p>\n

\n
\"Evergrande
Schedule of upcoming Evergrande bond payments. Data: Bloomberg<\/a>.<\/figcaption><\/figure>\n<\/div>\n

Concurrently with the Evergrande default fears, on the evening of November 10 an auction of 30-year U.S. government bonds took place. Weak demand, amid inflation accelerating to a 6.2% year-on-year rate \u2014 the highest since 1990 \u2014 sparked price declines and a sharp rise in yields. Against this backdrop the dollar strengthened markedly, weighing on risk assets as well as gold and Bitcoin.<\/p>\n

\n
\"Bitcoin<\/figure>\n<\/div>\n
\n
\"Bitcoin<\/figure>\n<\/div>\n
\n
\"Bitcoin
Data: ZeroHedge<\/a>.<\/figcaption><\/figure>\n<\/div>\n

Deutsche Bank<\/a> conceded that Bitcoin would become ‘digital gold of the 21st century’.<\/p>\n

In October, Apple co-founder Steve Wozniak stated<\/a> that Bitcoin outperforms the US dollar.<\/p>\n

Subscribe to ForkLog news on Facebook!<\/p>\n","protected":false},"excerpt":{"rendered":"

On November 10, after reaching an all-time high near $69,000, Bitcoin fell almost 9%, slipping below $63,000. CoinDesk linked this to rumours of a potential default by one of China’s biggest developers, Evergrande.<\/p>\n","protected":false},"author":1,"featured_media":52706,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,1431,133,2245],"class_list":["post-52705","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-bonds","tag-china","tag-evergrande"],"aioseo_notices":[],"amp_enabled":true,"views":"16","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/52705","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=52705"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/52705\/revisions"}],"predecessor-version":[{"id":52707,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/52705\/revisions\/52707"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/52706"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=52705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=52705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=52705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}