Earlier, it was down as much as 12%.
Other cryptocurrencies are tumbling, too. Ethereum and dogecoin have each declined 4.4% and about 6%, respectively, in the past 24 hours.
Even though the company primarily serves mainland China, investors around the world are worried. The massive amount of money borrowed by Chinese companies has long been considered a looming threat to market stability. Now investors fear the exposure that banks might have to Evergrande and companies like it.
The issue had already weighed on Hong Kong markets earlier in the day, as Chinese banks, insurers and other real estate companies were slammed.
Edward Moya, senior market analyst of the Americas at Oanda, said on Monday that bitcoin was no different from other assets.
“The fallout from the Evergrande is putting a tremendous dent in risk appetite that is sending everything lower,” he wrote in a note to clients.
Moya noted that cryptocurrencies had performed well this year, “despite all the volatility.”
“So it should not surprise Wall Street they are the first asset sold in the beginning of China-driven market selloff,” as investors aim to cash in, he added.
The country purchased 150 bitcoins, and now holds 700 coins, he added.
-— Anneken Tappe and Laura He contributed to this report.