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Seeking Alpha 2021-09-20 11:43:39

Bitcoin leads cryptocurrency plunge as global markets suffer 'risk-off' day

The growing likelihood of a collapse of Chinese property developer Evergrande sent Hong Kong reeling more than 3% overnight (Shanghai was closed). That's shaken up markets in the west, with Europe down 2% at midday, and U.S. stock index futures down about 1.5%. China's possible "Lehman moment" has money flowing into fixed-income, with the 10-year U.S. Treasury yield down four basis points to 1.33%. The action appears to be hitting the crypto markets in a big way, with bitcoin (BTC-USD) plunging more than 7% in the last 12 hours, and minutes ago dropping below $44K. Ether (ETH-USD) is down 8%. If a Lehman moment is coming, than surely the tried and true government/central bank response - flooding the system with massive amounts of liquidity - can't be far behind. The Fed meets this week, and today's tremors likely gives more ammunition to the doves who would prefer to hold off any taper announcement.

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