Asian market pushes Bitcoin past $25,000

Bitcoin has once again managed to break above $25,000 and is flirting with $26,000 at the time of writing. The bullish momentum seems to be back at the moment and the Asian market in particular has been responsible for this in recent hours. There, too, people seem preoccupied with the banking crisis unfolding in the West.

Low liquidity, high buying pressure

Speaking to CoinDesk TV, Kaiko’s research department head Clara Medalie said the mini-rally was the result of low liquidity and high buying pressure. Low liquidity means that order books are relatively empty and little capital is needed to move prices.

If you then combine that with high buying pressure, you get price explosions like we see today. “There is a tremendous amount of buying pressure in the markets. Subsequently, if the markets are not very liquid, any amount of buying pressure will have a significant impact on the Bitcoin price,” said Medalie.

So at this point, it seems that the Asian market provided the most recent pump for Bitcoin and the rest of the crypto market. According to Medalie, it is mainly Europe and Asia that have the opportunity to benefit from the low liquidity due to the banking crisis in the United States.

Correlation between stocks and Bitcoin

What is also striking is that the correlation between Bitcoin and stocks is starting to break, Madelie told CoinDesk TV. Normally we see Bitcoin, crypto and stocks moving quite in tandem with each other. When stocks rise, Bitcoin rises and vice versa.

Now Bitcoin is on the rise, while equities are struggling relatively. That is a sign that investors are again focusing specifically on Bitcoin. In itself, this is a good development, because Bitcoin is theoretically separate from the traditional financial system.

Bitcoin is an asset that fundamentally does not care about what happens in the outside world. If everything around Bitcoin collapsed, the network would just continue to produce blocks and continue as if nothing had happened. That is ultimately the strength of Bitcoin.

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