17th March 2023 – (New York) Bitcoin has surged past US$25,000 and most major digital assets are in the green as Asia starts its business day. The cryptocurrency market rally is attributed to low liquidity in the market and high buying pressure, according to Clara Medalie, Director of Research at Kaiko. Binance’s conversion of $1 billion of BUSD to bitcoin, ether, BNB and other tokens has added fuel to the fire. “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 said.
She also noted that Europe and Asia have a chance to be a magnet for liquidity orphaned by the collapse of Silvergate and Signature. Despite the current rally, the correlation between stocks and crypto is breaking, pointing to a divergence between crypto and equity markets.