Previously, it had fallen by 12%.
Other cryptocurrencies are also collapsing. Ethereum and dogecoin each fell 4.4% and around 6%, respectively, in the last 24 hours.
Even though the company mainly serves mainland China, investors around the world are worried. The huge amount of money borrowed by Chinese companies has long been seen as an imminent threat to market stability. Today, investors fear the banks’ exposure to Evergrande and similar companies.
The problem had already plagued Hong Kong markets earlier today, as Chinese banks, insurers and other real estate companies came under fire.
Edward Moya, senior market analyst for the Americas at Oanda, said on Monday that bitcoin was no different from other assets.
âThe fallout from the Evergrande is a huge dent in the risk appetite that brings everything down,â he wrote in a note to clients.
Moya noted that cryptocurrencies have performed well this year, “despite all the volatility.”
“This should therefore come as no surprise to Wall Street, they are the first asset sold at the start of the China-induced market liquidation,” as investors aim to cash in, he added.
The country bought 150 bitcoins and now holds 700, he added.
— Anneken Tappe and Laura He contributed to this report.