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Cryptocurrency prices were in the red on Friday morning as concerns as a sense of fear spread in the market. Bitcoin plunged below the important support at $28,000 and reached a multi-month low of $26,000. Most altcoins, including ApeCoin, Zilliqa, Bitcoin Cash, Sui, and Solana also plunged.

SEI, Zilliqa, Solana prices

Cryptocurrencies were not the only assets in the red. American stocks plunged hard on Thursday, with the Dow Jones shedding over 300 points and the Nasdaq 100 falling by over 110 points.

In Asia, the Hang Seng was on the verge of moving into a bear market after Evergrande filed for bankruptcy protection in New York. The filing marked a major downfall of a prestigious Chinese company that started in 2021.

Evergrande is not the only major company to collapse. Country Garden, an equally large real estate developer, has also warned about its finances, with its first-half losses soaring to over $7.5 billion.

China is an important market across all financial assets. In stocks, most companies have a direct or indirect exposure to the country. For example, American firms like Tesla and Apple count China as their key market. 

China banned cryptocurrencies in 2021. However, as I wrote here, China is still a big player in the crypto sector and is the biggest market for crypto companies like Binance and Huobi. 

Therefore, the new normal of weak Chinese output and deflation is sending shivers around the world. 

Bitcoin and altcoins like ApeCoin, Zilliqa, and Sui also plunged because 4.36% while the 10-year rose to 4.2%. These yields have jumped to their highest levels in more than a decade. Bond prices move inversely with the yield. 

At the same time, American mortgage rates jumped to the highest point in more than 20 years. A likely reason for this performance is the FOMC minutes, which pointed to another rate hike in the coming meeting in September.

While the US has published strong retail sales and housing data, there is the risk of a slowdown now that most Americans are depleting their excess savings. Millions of Americans are set to start paying back their student loans in the next few months.

Most importantly, these altcoins plunged after Bitcoin dropped below the important support at $28,000. As I wrote on Wednesday, BTC formed a double-top pattern, which is usually a bearish sign. In that report, I warned that the coin could drop to about $25,000.

Therefore, in all this, crypto investors should take heart since other assets are also in a deep meltdown as well. As such, they will likely bounce back if stocks and bonds bounce back.

The post Here’s why ApeCoin, Zilliqa, Sei, Sui, Solana prices are sinking appeared first on Invezz.

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