Bitcoin (BTC), which was held at $48,000, on Thursday. This was a result of excitement over China’s “Lehman Brothers” moment.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Tether executive assures Evergrande
Cointelegraph Markets Pro and TradingView data showed that BTC/USD traded near $48,000 on Thursday.
Although progress towards $50,000 was less clear, analysts believe that the debt crisis at China’s second-largest realty developer will provide much-needed confidence.
Evergrande Real Estate Group (3333.HK), suspended bond trading on Thursday. This is the latest episode of a saga in which the giant was subject to multiple ratings reductions.
300 billion dollars at stake, it was easy to draw comparisons to 2008’s global financial crisis.
China’s Lehman moment. “China’s Lehman moment. The money printing will massive, I repeat MASSIVE!” PlanB, the creator of the stock to-flow family of Bitcoin price model models, stated to his Twitter followers.
“This is good news for Bitcoin.”
PlanB refers to Evergrande’s possible bailout by the government or its wider-reaching consequences. Various sources warn that this could have a wide impact on the economy, both within and outside Beijing.
The overture to Bitcoin’s spectacular rise from its March 2020 lows of $3,000 to highs of $64,500 less than a year later was money printing on a large scale by central banks.
Evergrande’s stock was trading at 2.63 Hong Kong dollars on Thursday. This is a decrease of 5.26 HKD from the beginning of July. It traded at a peak of 30 HKD in 2017.
Chart of 1-day candles for 3333.HK/USD Source: TradingView
Tether, the largest stablecoin issuer in US dollars, has publicly stated that it was not exposed to the brewing crisis.
Cautious optimism on BTC spot
Bitcoin showed some tentative strength, conserving $48,000 by a hair on the day and, with that, remaining above key moving averages in the daily chart.
Related: Bitcoin bulls expect to profit Friday’s $195M BTC options deadline
This week saw the second consecutive golden cross for cryptocurrency. It fuelled hopes that Q4 would be a catalyst for a bull run to new heights.
#BTC has successfully rebounded from the blue 50-day EMA after holding it as support for several days$BTC #Crypto #Bitcoin https://t.co/QfAjLPC7aA pic.twitter.com/x2JZnvA01V
— Rekt Capital (@rektcapital) September 15, 2021
September’s $43,000 monthly “worst-case scenario” close should give way to at least $63,000 in October as PlanB has previously predicted.