Conflicting news has emerged about whether the Chinese real estate giant Evergrande defaulted on late loan payments before the recent fall in bitcoin prices.

Evergrande Group is the second largest real estate developer in China and owes it around $ 300 billion. There are fears that the collapse could lead to a broader financial crisis.

Two minutes after Evergrande was due to pay, Deutsche Markt Screening Agentur (DMSA) announced the announcement on November 10 at 4 p.m. UTC announces that they are preparing to file for bankruptcy of Evergrande.

Two hours later at about 6 p.m. At UTC, bitcoin began a several-hour decline to $ 62,800.

About 45 minutes later, Morning Brew media reported that Evergrande had not paid its outstanding debt, which falls due on Wednesday at 16.00. UTC and default. It took another 45 minutes before Bloomberg published an article stating that this was not the case.

Hours after the first decline, prices stabilized at $ 64,500. It was about the same time that Bloomberg reporter Alison McNealy tweeted: “Contrary to what you may have heard ~ on the Internet, Evergrande is not far behind today.”

William Fong, chief trader at the Australian crypto-investment platform Zerocap, told Cointelegraph:

“Evergrande has not formally defaulted on its foreign debt in the international dollar bond market.”
“To sum up, $ 148 million is nothing compared to $ 300 billion in outstanding Evergrande debt, but it raises concerns about the $ 100 billion of outstanding ‘well-preserved’ structured external bonds from Chinese and state-owned enterprises.” he said.

Fong believes Evergrande’s help will not come soon because “Chinese regulators have imposed a restriction on over-expanding developer influence,” adding:

“This has created potential pollution risk for the entire developer area and has spread to financial institutions and industrial sectors.”
Some believe that the price of bitcoin may also be in danger of a stock market crash, due to concerns that almost half of Tether’s reserves are in commercial securities worth almost $ 30 billion. This is enough for the Financial Times to place Tether among the “global giants” in this category.

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However, Tether has denied that they have any Evergrande commercial papers, although it may have been presented to Chinese companies. Commercial bills are corporate bonds with short maturities, usually less than one year.

Source: CoinTelegraph