The bright side of Evergrande’s collapse? More crypto volatility

cointelegraph.com:

As Evergrande Group, China’s heavily indebted property developer, files for bankruptcy in the United States, many are concerned about how this will impact the global economy and cryptocurrencies. The situation represents one of the largest debt faultings in the world and will have sizable ramifications.

However, it shouldn’t come as too much of a surprise that China’s real estate agent running out of money to cover debt is causing worry within the crypto space. While many fear Evergrande’s collapse will cause a knock-on effect for other tokens and coins already vulnerable in financial markets, the increased crypto volatility could be the silver lining for investors.

The collapse of a significant financial player like Evergrande could generate uncertainty and volatility across all asset classes, including cryptocurrencies. There’s no denying the crypto market is volatile. In other words, even the slightest hit to the status quo can cause the price of even the biggest cryptocurrencies to go down the dumps or through the roof.

Related: BlackRock’s misguided effort to create ‘Crypto for Dummies’

This is even the case for Bitcoin (BTC). Cryptocurrencies are falling as concerns around China result in risk off-sentiment. Leading analysts have reported that the downturn in the crypto market is no big deal. However, investors are still in a hurry to liquidate their crypto funds. This is likely due to the fear of China’s crisis disrupting the biggest worldwide financial balance.

Evergrande, one of China’s real estate giants, just filed Chapter 15 bankruptcy.

Meanwhile, China’s HY real estate index is down a massive 82% in just over 2 years.

This puts the index back down to 2008-levels.

All while China just “unexpectedly” cut