Fear over the Evergrande situation heavily impacted all financial markets in the recent week. The crypto market faced another round of selling on Monday, as global financial markets fell under pressure as a result of Evergrande group facing potential default. The price fell all the way to $42,493 before the bulls managed to push the price higher again. On Tuesday, the price hit another low, as it tested the $40,000 level for the first time since 6. August. After the second test of support, the price showed some strength and managed to steadily climb all the way to the $45,000 level on Thursday. Having reclaimed the important level, the price fell under strong selling pressure again on Friday, as the Chinese government announced a set of new measures, which will fight against crypto adoption in China.
As a result of the Chinese central bank injecting liquidity into the Banking system (as it pumped 18.6 billion dollars into the banking system), the investors sentiment shifted somewhat towards greed, but the news on China banning cryptocurrency transactions changed it, at least temporarily, right back. The price managed to get back above the $42.4k level and is kind of waiting for either a bullish or bearish catalyst to push it in a certain direction.
Regarding development here at NewsCrypto, the most important thing to mention is our partnership with Zignaly, an innovative social investment platform. We’ll combine our different approaches towards achieving a similar goal, which is helping you maximize your profits. Zignaly will provide incentives and exclusive offers to users coming from our community and give us early access to the Zignaly bridge, empowering NWC holders with an advantage of highly scalable and efficient blockchains.
Another major event of this week was an update on our partnership with Polygon that we’ve received a development grant from Polygon to provide a revolutionary liquidity solution that will bring billions of dollars of liquidity into DeFi on Polygon. We’ll soon release a Stellar-Polygon bridge which will enable users to swap their XLM tokens to wrapped XLM on Polygon The swap will happen in a matter of seconds with close to zero cost. Having wrapped XLM will enable you to access all the DeFi protocols that Polygon has to offer.
That’s it for this week. I hope you handled the extreme volatility well. Looking forward to writing to you again in seven days.