Beautiful Virgin Islands

Monday, Oct 06, 2025

The Evergrande Debt Crisis Impact On Bitcoin And Beyond

The Evergrande Debt Crisis Impact On Bitcoin And Beyond

What does the debt crisis of Evergrande – one of China’s largest companies have to do with Bitcoin?

The financial world is closely following the possible collapse of Evergrande Real Estate Group, and what’s going on in China.

The global markets plunged as Evergrande stock price lost another 10%, also sending Bitcoin well into the red with a decrease of around 8% in the past 24 hours alone. What is going on?

Evergrande Real Estate

Evergrande Real Estate group became one of the leading companies in China when it comes to real estate. According to BBC, it has developed over 1,300 projects in more than 280 Chinese cities, and it’s also the owner of one of the country’s largest football teams – Guangzhou FC.

It has borrowed over $300 billion from over 171 domestic banks and 121 other financial institutions. As Beijing implemented last year new rules that control the amount of money owed by big real estate developers, Evergrande was forced to offer its properties at massive discounts.

The company did so to ensure there’s enough money coming in to keep its business model operational. Currently, Evergrande is struggling to meet the interest payments on its debt. The question is will Beijing bail them out?

Impact inside and Outside of China

Evergrande is one of the largest companies in the second largest economy in the world. Complicated macro and microeconomic postulates come into play when it comes to the impact that Evergrande’s potential fallout might have on the world’s economy.

There are several reasons for which these problems are serious and need proper consideration.

A lot of people bought properties from Evergrande before the company started building them, who now might lose their deposits if things go badly down.

Evergrande has an international supply chain, and it does business with many firms across the world, all of which face major financial risks should Evergrande default.

Major corporations do have a big impact on the country’s economy. Speaking on the matter was Mattie Bekink from the Economist Intelligence Unit (EIU), who outlined the above connections of Evergrande:

“The financial fallout would be far reaching. Evergrande reportedly owes money to around 171 domestic banks and 121 other financial firms.”

If Evergrande defaults, its lenders (the 292 financial institutions) may be forced to lend less and increase rates, which would trigger credit crunch. Some of them rely on debt to grow, and in some particular cases, they might even be unable to function without it.

Market Impact

Over the past 6 months Evergrande’s stock has sunk over 80%. Just today, the company’s shares plunged over 10%.

This has lead a wider dip in the Hang Seng Index, which tracks major Chinese companies, to decrease by 3.3%, marking its biggest loss since late in July. It seems that the property fears are spreading beyond Evergrande.

The global markets also took a turn to worse in pre-market trading hours. According to CNN, the S&P500 futures are down 1%, and so are DOW and NASDAQ futures.

So What About Bitcoin?

Read the full article at Fintechs.fi

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Trump Stands Firm in Shutdown Showdown and Declares War on Drug Cartels — Turning Crisis into Opportunity
Surge of U.S. Billionaires Transforms London’s Peninsula Apartments into Ultra-Luxury Stronghold
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Jeff Bezos Calls AI Surge a ‘Good’ Bubble, Urges Focus on Lasting Innovation
Japan’s Ruling Party Chooses Sanae Takaichi, Clearing Path to First Female Prime Minister
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Taylor Swift’s ‘Showgirl’ Launch Extends Billion-Dollar Empire
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
FBI Removes Agents Who Kneeled at 2020 Protest, Citing Breach of Professional Conduct
Trump Alleges ‘Triple Sabotage’ at United Nations After Escalator and Teleprompter Failures
Shock in France: 5 Years in Prison for Former President Nicolas Sarkozy
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
BNP Paribas Abandons Ban on 'Controversial Weapons' Financing Amid Europe’s Defence Push
Typhoon Ragasa Leaves Trail of Destruction Across East Asia Before Making Landfall in China
The Personality Rights Challenge in India’s AI Era
Big Banks Rebuild in Hong Kong as Deal Volume Surges
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Arnault Denounces Proposed Wealth Tax as Threat to French Economy
Study Finds No Safe Level of Alcohol for Dementia Risk
Denmark Investigates Drone Incursion, Does Not Rule Out Russian Involvement
Lilly CEO Warns UK Is ‘Worst Country in Europe’ for Drug Prices, Pulls Back Investment
Nigel Farage Emerges as Central Force in British Politics with Reform UK Surge
Disney Reinstates ‘Jimmy Kimmel Live!’ after Six-Day Suspension over Charlie Kirk Comments
U.S. Prosecutors Move to Break Up Google’s Advertising Monopoly
Nvidia Pledges Up to $100 Billion Investment in OpenAI to Power Massive AI Data Center Build-Out
U.S. Signals ‘Large and Forceful’ Support for Argentina Amid Market Turmoil
×