Bitcoin Recovers After Brief Fall Below $40,000

The global flagship cryptocurrency has started a gradual recovery after nosediving below $40,000 earlier today.

Bitcoin goes under $40,000 first time since August

After the leading crypto declined lower than $40,000 for the first time since August and got more criticism from financial regulatory agencies, Bitcoin has managed to reverse and reach the $42,000 level.

Earlier today, the largest crypto grew back to the $42,132 level (surging 2.9%) after going down to $39,625 briefly and losing 3.2% on that drop. The top cryptos that follow Bitcoin on the top 10 list—Ethereum, Litecoin and Solana—lost more value in the past 24 hours, however.

Bitcoin Chinese issue relieved

As reported by the media earlier this week, the Bitcoin correction was mainly caused by low sentiment after issues in China. The second-largest housing builder in China, Evergrande Group, was unable to pay out $2 trillion yuan worth of its debts to shareholders.

However, according to CNBC, the company has negotiated a deal for paying interest payments on its domestic bonds on time. Besides, as the CNBC reporter in China said, the local Central Bank (PBOC) has issued a $14 billion stimulus to support the local banking system.

These measures have somewhat calmed down investors' worries for now.

NEW: Chinese property giant #evergrande will make interest payments on its domestic bonds on time, helping calm fears of an imminent collapse. @onlyyoontv reports on latest developments: pic.twitter.com/oy1hSFtARE

— Squawk Box (@SquawkCNBC) September 22, 2021

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