Bitcoin is 5.3 per cent higher at $25,703 during the past 24 hours, while ether is nearly 2.8 per cent higher at $1,697
Most leading digital assets are in the green as Asia begins its business day.
Bitcoin is 5.3 per cent higher at $25,703 during the past 24 hours, while ether is nearly 2.8 per cent higher at $1,697. Binance’s BNB token is 8.7 per cent higher at $331.
Kaiko’s Director of Research Clara Medalie, said on a recent CoinDesk TV appearance that this mini-crypto rally is due to low liquidity in the market and high buying pressure. Binance converting $1b of Binance USD to bitcoin, ether, BNB and other tokens was the fuel for the fire.
This is a big buy pressure on the markets, Medalie said. As the markets are not that liquid, any noteworthy buying pressure is probably going to have a significant effect on prices as a whole.
She 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 some crypto firms actually based in Europe or Asia-Pacific that have maintained their banking relationships, so it actually presents a quite a big opportunity for these regions to accept crypto businesses, Medalie said.
Taiwan’s Maicoin, for example, maintains a relationship with a big bank in Taiwan to act as its fiat pipeline.
She also notes that the correlation between stocks and crypto is coming to an end, pointing to the parting between crypto and equity markets at the beginning of the year and during this latest rally.
It flipped this week. We see crypto markets rallying, while equity markets have totally collapsed, Medalie said. The parting in these markets has flipped, and that is being maintained, which is creating this diminishing correlation for Nasdaq’s tech stocks as well as Europe’s 600 index.
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