At the time of publishing one Bitcoin is worth just over $58,600, having retreated heavily from an intra-month high of almost $71,000.
A month ago, on August 9, Bitcoin’s market capitalisation – or total value – was hovering around A$1.2 trillion.
Today that figure is $1.1 trillion, having recorded a 6.49 per cent drop in the past 24 hours.
Tim Frost, CEO of Yield App, said in his market commentary that cryptocurrency investors should buckle up for what is “probably going to be quite an unpleasant week for digital assets prices”.
“It’s red, red, red across the board today as the cryptocurrency markets follow the downturn being seen in traditional markets as China battles a highly contagious property market crisis,” Mr Frost said.
“Bitcoin has lost support at the US$44,000 mark and looks set to test its US$39,000 floor.
“If it falls through here we can expect a significant correction to come.
“Similarly, the world’s second-biggest cryptocurrency, Ethereum, is testing support levels at around US$3000, and we can expect it to fall well into the upper to mid-US$2000 ranges.”
If it does, many speculate the result will be a worldwide ripple on global stock markets given China’s property sector accounts for around 14 per cent of its GDP.
Others argue that the Chinese government will intervene to prevent “economic dominoes” from falling if Evergrande is forced to default on its loans.
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