Evergrande is a major Chinese real estate developer, who through leveraged properties and issuing US denominated junk bonds, built up a real estate empire making it the second biggest in the country. Due to the pandemic many of their tourist properties suffered a hit. They've now managed to rack up $300 billion in debt. They've just announced that they wont be able to make their interest payment by September 20th. Their debt is very simlar to that of Lehman Brothers which was the largest case of bankruptcy in history.
Their bond trading was suspended today due to a the second downgrade in many days. If Evergrande isn't bailed out by the chinese gov't then this could get messy. It is estimated that Evergrande owns 2% of all property in China. They will be forced to liquidate their properties and thus will drive the price of homes down quickly in china. There most definitely would be a ripple effect that would impact the global market, especially since 15% of all global debt is owed to china.
As far as bitcoin the cirumstances are eerily similar. 50% drop from high - rebound of 60-70% - golden cross -
Not saying this will happen but I certainly wouldn't rule it out of play. Let me know what you guys think.
Could be possible for another crash, for many reasons, btc fail to get above 48.5k and fellout of a rising wedge. Second S and p 500 is looking to have a correction based on elliott wave theory. Btc flipped support into resistance. I think based on my opinion, not saying im right, likely for a crash in 1 or 2 weeks. Simply because it still has room to go up before it crash again for both btc and s and p 500.