High Buying Pressure Pushes Bitcoin Past 25K
Most major digital assets are in the green as Asia starts its business day.
Bitcoin is up 5.3% in the last 24 hours to $25,703, while ether is up about 2.8% to $1,697. Binance’s BNB token is up 8.7% to $331.
Kaiko’s Director of Research Clara Medalie said on a recent CoinDesk TV appearance that this mini-crypto rally is because of low liquidity in the market and high buying pressure. Binance converting $1 billion of BUSD to bitcoin, ether, BNB and other tokens was the fuel for the fire.
“This is a huge amount of buy pressure on the markets,” she said. “As the markets aren’t that liquid, any significant buying pressure is likely going to have a considerable impact on prices as a whole.”
Medalie also says that Europe and Asia have a chance to be a magnet for liquidity orphaned by the collapse of Silvergate and Signature.
“There are quite a few crypto companies actually based in Europe or APAC that have maintained their banking relationships, so it actually presents a pretty big opportunity for these regions to accept crypto businesses,” she said.
Taiwan’s Maicoin, for instance, maintains a relationship with a large bank in Taiwan to act as its fiat pipeline.
Medalie also notes that the correlation between stocks and crypto is breaking, pointing to the divergence between crypto and equity markets at the start of the year and during this most recent rally.
“It flipped this week. We see crypto markets rallying, while equity markets have completely collapsed,” she said. “The divergence in these markets have flipped, and that’s being maintained, which is creating this decreasing correlation for both Nasdaq’s tech stocks and Europe’s 600 index.”
Source: CoinDesk
Recent Comments