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Bitcoin, Ethereum Recover as Evergrande Fears Subside, Fed Talks

The crypto market is picking up again after taking a hit earlier this week.

Bitcoin—and the wider cryptocurrency market—today bounced back after a troubling start to the week for investors, aided by a Federal Reserve announcement and good news from Chinese property developer Evergrande. 

The biggest digital asset by market cap was trading at $43,796, a 3.8% 24-hour increase, according to CoinGecko data. 

Ethereum, the second biggest cryptocurrency by market cap, also made hopeful gains of 5.3% in 24 hours and was trading at $3,089. It had been hit hard Monday—harder than Bitcoin—and was just yesterday trading below $3,000, the first time it dipped that low since August 6. 

The crypto market was struggling Monday and Tuesday—along with the global equities market—partly due to concerns over a potential global financial fallout related to Chinese property developer giant Evergrande. The company has $300 billion-worth of debt that some analysts say it won’t be able to pay back.

The situation has had some wondering whether this could amount to China’s “Lehman moment,” suggesting that the country could be on the verge of a financial crisis on par with the one caused by Lehman Brothers’ collapse in 2008.

Today, though, the Shenzhen-based company said it agreed to settle interest payments on a domestic bond. This calmed previously spooked global markets. 

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