The Bitcoin price (BTC) has again exceeded 26k$up more than 5% over 24 hours. For Kaiko, this rebound is notably due to the low liquidity on the market and a strong buying pressure.
Overnight, the price of Bitcoin recorded a significant increase and is currently trading above 26 000 $.
The price of the queen of cryptos, which was already briefly jumping earlier this week to over $26,500, is approaching its June 2022 level.
For the research director at Kaiko, the recent rise is partly due to the low liquidity on the market and a ” enormous buying pressure “.
Binance recently announced that its exchange would convert the remaining BUSD in its fund to support the sector into various tokens, including BTCETH and NBB“given the changes in stablecoins and banks”.
This is a huge buying pressure on the markets. Since the markets are not that liquid, any significant buying pressure is likely to have a significant impact on prices as a whole,” commented Clara Medalie, on Coindesk.
In a blog post earlier this week, Kaiko already noted that the fallout from the U.S. Silvergate and Signature banks would heavily impact the liquidity in the crypto market as the industry becomes increasingly disconnected from the banking system. Liquidity refers to the ease with which an asset can be bought or sold at a stable price in a market.
The analyst also noted that the correlation between the traditional stock markets and the crypto market was breaking down. “It flipped this week. We’re seeing the crypto markets rally, while the stock markets have completely collapsed,” she said.
More broadly, over 24 hours, most crypto stocks are in the green. BTC (+5%), ETH (+4%) and BNB (+6%) are outperforming much of the market, whose overall market capitalization is now about $1120 billion.
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