Bitcoin rebounded from support at $40k. Crisis canceled: China starts helping Evergrande

The price of bitcoin dipped to its lowest in a month and a half tonight. After falling to $39,500, it bounced back to $42,300. The recovery came amid news that Evergrande, the Chinese real estate developer with the largest debts in the world, received government support and with it the opportunity to pay off its bond coupon on September 23.

The fall in bitcoin began on Sunday, September 19, when Evergrande shares fell 14.5% (to an 11-year low) on the Hong Kong Stock Exchange. Investors’ worries were reflected in the price of other assets, the first cryptocurrency was not left out.

But tonight it became clear that the default was postponed. Hengda Real Estate Group, the main legal entity of real estate developer Evergrande, told PRC investors that it will be able to pay the coupon on bonds maturing in September 23, 2025. Thus Evergrande will pay Chinese investors $35.9 million in coupons. However, it is too early to relax – the company has not provided information about coupon payments on dollar bonds: it is necessary to pay investors $83.5 million on them. This opportunity has appeared thanks to the Chinese government, which may gradually nationalize Evergrande.