Bitcoin has cautiously held around $48,000 on September 16, 2021, as excitement spilled over a boost due to China experiencing its “Lehman Brothers moment.” Comparisons to 2008 have come in as traditional finance gets a new blow from a company ‘too big to fail.’
Tether Executive Reassures Community On Evergrande
Data acquired from TradingView showed Bitcoin trading near the $48,000 level on Thursday with progress toward $50,000 being less decisive. Analysts are widely hopeful that a debt crisis at China’s second-biggest real estate developer would offer the much-needed confidence.
Evergrande Real Estate Group (3333.HK) said that it suspended bond trading today, the latest episode in a saga that has seen the giant company receive many rating cuts. With around $300 billion at stake, many comparisons to the 2008 global financial crisis were quick to come up.
The creator of the stock-to-flow family of BTC price models, PlanB, told Twitter followers:
“China’s Lehman moment. The money printing will be massive, I repeat MASSIVE!”
“This is good for Bitcoin.”
PlanB was referring to a possible government bailout of Evergrande or the widespread implications of its meltdowns. Various sources now warn that the impact of a meltdown might hit many sectors of the economy inside and outside Beijing’s jurisdiction.
Money printing on a massive scale by the central banks previously offered the overture to BTC’s dramatic run-up from the lows near $3,000 in March 2021 to an all-time high above $64,500 within 13 months.
Evergrande’s stock traded at around 2.63 Hong Kong dollars at the close of trading in Hong Kong on September 16, 2021, down from 5.26 HKD at the start of July. During its peak in 2017, it traded above 30 HKD.
The biggest US dollar stablecoin issuer, Tether, in the meantime, publicly confirmed that it had no exposure to the developing crisis.
Critical Optimism On Bitcoin Spot
Bitcoin showed tentative strength on the day, hovering around $48,000 and remaining above the key moving averages on the daily chart.
The crypto saw a golden cross event in the week, its second since August 2021, increasing hopes that Q4 2021 would in and of itself offer a bull run to reach a new all-time high.
— Rekt Capital (@rektcapital) September 15, 2021
September, with its projected “worst-case scenario” monthly close of $43,000, should give way to a minimum of $63,000 in October 2021, PlanB forecasted in the past.