When Asia begins its work day, most major digital assets are in the green. Bitcoin has increased by 5.3% in the previous 24 hours to $25,703, while ether has increased by around 2.8% to $1,697. Binance’s BNB coin has increased by 8.7% to $331.
Clara Medalie, Kaiko’s Director of Research, stated in a recent CoinDesk TV appearance that this mini-crypto surge is due to low liquidity in the market and significant buying pressure. Binance’s conversion of $1 billion in BUSD to bitcoin, ether, BNB, and other tokens fueled the flames.
“There’s a lot of purchase pressure in the markets right now,” she remarked. “Since the markets aren’t particularly liquid, any big purchasing push is likely to have a significant influence on prices overall.”
Medalie also believes that Europe and Asia have the potential to be a magnet for liquidity left behind by the failures of Silvergate and Signature.
“There are quite a few crypto firms situated in Europe or Asia that have kept their banking relationships, so it actually gives a very huge potential for these countries to accept crypto businesses,” she added. Taiwan’s Maicoin, for example, has a link with a prominent bank in Taiwan that serves as its fiat pipeline.
Medalie also observes that the association between equities and cryptocurrency is collapsing, referring to the divergence between crypto and equity markets at the beginning of the year and throughout the most recent surge.
“This week it switched. “We’re seeing a rise in crypto markets while equities markets have utterly imploded,” she remarked. “The disparity in both markets has turned and is continuing to do so, resulting in this diminishing connection for both Nasdaq tech stocks and Europe’s 600 index.”