The world’s most valuable digital asset by market value recently surpassed $28,000, rising 3% in the last 24 hours. Remember how the demise of crypto-friendly institutions was meant to suffocate cryptocurrency?
That story didn’t endure long. After the first chapter of the novel, in which Silvergate and Signature die, there is a systematic crisis of faith in the global financial system, which has sparked a thirst for risk assets as TradFi liquidity dries up – despite unstable fiat pipelines.
Things are a little different in Asia. According to David Bachelier, Asia-Pacific CEO of Flowdesk, the collapse of Silicon Valley Bank and the remainder of the U.S. financial crisis had little impact on Singapore and the rest of Asia, but it remains unclear whether banks will step in to fill the void.
“SVB was a crucial player in providing funding and other services to high-growth firms that many Asian banks do not provide,” he wrote in a note to CoinDesk. “This is a vital time for the Asian venture business, with a potential to fill the void created by the failure of American players.”
Bachelier emphasizes that, while an Asian SVB is unlikely to emerge anytime soon, these institutions are stepping up and offering fiat pipelines for crypto. “The recent Coinbase statement showcasing banking ties in Singapore is also worth noting as it demonstrates an American company growing further into the Asian region, implying the comparatively minor interruption in response to these banking crises,” he said.
But the question is, how long will this surge last? According to Joe DiPasquale, CEO of digital asset manager BitBull Capital, bitcoin is prepared to test $30,000, but fundamental support may be lacking.
“From a technical standpoint, the present price movement is hot and we could see a pullback toward $25K in the short term. The major market mover will most likely be the FOMC meeting in roughly three days, where the bulk of analysts expect a 25 basis point raise at best,” DiPasquale told CoinDesk via email.
