Alien news about whether Chinese property giant Evergrande had defaulted on its overdue loan payments emerged just earlier Bitcoin'due south (BTC) recent price crash.

Evergrande Group is People's republic of china's second-largest property developer and is in debt for roughly $300 billion. In that location are fears that its plummet could spark a wider financial crisis.

Two minutes subsequently Evergrande's payment was due, the Deutsche Markt Screening Agentur issued an declaration on Wednesday at four pm UTC, stating that it was preparing bankruptcy proceedings against Evergrande.

Two hours later on, at near half dozen pm UTC, Bitcoin began it'south hours-long pullback to $62,800.

Media outlet Morn Mash reported about 45 minutes after that Evergrande had missed a payment on its outstanding debt, which was due on Wednesday at 4 pm UTC, and defaulted. Another 45 minutes passed earlier Bloomberg issued a story saying that it hadn't.

Prices stabilized around $64,500 several hours after the initial drop. This was around the aforementioned time Bloomberg reporter Allison McNeely tweeted, "Contrary to what you lot may have heard ~on the internet~ Evergrande did not default today."

William Fong, senior trader at Australian crypto-nugget investment platform Zerocap, told Cointelegraph:

"Evergrande has non officially defaulted on whatsoever of its offshore debt obligations in the international USD bail market."

"Bottom-line, $148 1000000 is nil compared to the $300-billion outstanding debt of Evergrande, but information technology does create a concern for the $100-billion outstanding 'proceed-well' structured offshore bonds by Chinese SoEs [state-owned enterprises] and corporates," he stated.

Fong believes that a bailout for Evergrande will not come whatever time soon because "Chinese regulators were the initiators of a cap aimed at over-expansion in programmer's leverage," adding:

"This has created potential contagion adventure across the entire holding developer space and has expanded towards financial institutions and industries dependent on the sector as well."

Some believe Bitcoin'due south price could also be at gamble from a stock market meltdown and due to fears that near half of Tether's reserves are made up of commercial newspaper, amounting to nearly $30 billion. This is enough for the Financial Times to identify Tether amidst "global giants" in that category.

Related: Record-high inflation prompts investors to accept a closer look at Bitcoin

However, Tether has denied that it holds any commercial paper from Evergrande, though it may be exposed to Chinese companies. Commercial newspaper is a corporate debt notation with a short expiration date of ordinarily under a year.