#Bitcoin has been on a roll lately, breaking through $25,000 with high buying pressure in the market. Most major digital assets are in the green as #Asia starts its business day. Bitcoin is up 5.3% in the last 24 hours to $25,703, while ether is up about 2.8% to $1,697. Binance’s BNB token is up 8.7% to $331. This mini-crypto rally has caused a lot of excitement among crypto enthusiasts and investors alike, and it's not hard to see why.



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According to Kaiko’s Director of Research, Clara Medalie, the recent surge in crypto prices is due to low liquidity in the market and high buying pressure. Binance converting $1 billion of #BUSD to bitcoin, ether, #BNB, and other tokens was the fuel for the fire. “This is a huge amount of buy pressure on the markets,” Medalie said. “As the markets aren’t that liquid, any significant buying pressure is likely going to have a considerable impact on prices as a whole.”

But what does this mean for the future of Bitcoin and other digital assets? Is this the start of a new bull run or just a temporary spike? Let's take a closer look.



Europe and Asia: A Magnet for Liquidity Orphaned by the Collapse of Silvergate and Signature



Medalie also notes that Europe and Asia have a chance to be a magnet for liquidity orphaned by the collapse of Silvergate and Signature. “There are quite a few crypto companies actually based in Europe or APAC that have maintained their banking relationships, so it actually presents a pretty big opportunity for these regions to accept crypto businesses,” she said.

For example, Maicoin in Taiwan has a relationship with a large bank in Taiwan, which acts as a fiat pipeline for Maicoin. Even though Silvergate and Signature just went out of business, this shows that crypto companies can still do business in areas where they still have banking relationships.



Breaking Correlation Between Stocks and Crypto

Medalie also notes that the correlation between stocks and crypto is breaking, pointing to the divergence between crypto and equity markets at the start of the year and during this most recent rally. “It flipped this week." "We see crypto markets rallying, while equity markets have completely collapsed,” she said. “The divergence in these markets has flipped, and that’s being maintained, which is creating this decreasing correlation for both Nasdaq’s tech stocks and Europe’s 600 index.”

This is an interesting change because it shows that the crypto market is becoming more independent from traditional financial markets. If this trend continues, it could mean that cryptocurrencies are starting to be seen as a legitimate alternative investment.

Conclusion

Overall, it's clear that the recent surge in Bitcoin and other digital assets is due to high buying pressure and low liquidity in the market. This has caused excitement among crypto enthusiasts and investors, who are wondering if this is the start of a new #BullRun or just a temporary spike. However, it's important to note that the crypto market is still very volatile, and there are many factors that could cause prices to fluctuate.

That being said, the breaking correlation between stocks and crypto is an interesting development that suggests that cryptocurrencies are starting to be seen as a legitimate alternative investment. And with opportunities for crypto companies to operate in regions where they have maintained banking relationships, despite the recent collapse of #Silvergate and Signature, it's clear that there is still a lot of potential for growth in the crypto industry.

Only time will tell what the future holds for Bitcoin and other digital assets. But one thing is for sure: the crypto market is a fast-paced and exciting space



 

The world of #cryptocurrency is often viewed as being constantly in a state of flux, with rapid developments and changes occurring on a regular basis. In recent news, one major development that has caught the attention of the crypto world is the announcement by Silvergate Bank that it will be shutting down.

#Silvergate Bank, founded in 1988, is a financial institution that specializes in providing services to cryptocurrency-related businesses. The bank has been an important player in the world of crypto, providing a range of services such as custody, settlement, and lending to its clients. However, the bank has recently announced that it will be shutting down its operations.

The announcement by Silvergate Bank has caused concern among the crypto community, as it is one of the few banks that has been willing to provide services to cryptocurrency businesses. Many businesses in the industry rely on Silvergate Bank for their banking needs, and the news of its closure has raised questions about the future of the industry.

According to the announcement, the bank will be winding down its operations over the next few months, with the closure expected to be completed by the end of the year. The decision to shut down was reportedly made due to a number of factors, including a decline in the demand for its services and increasing competition from other banks in the space.

While the news of the closure may be alarming, it is important to note that the crypto industry has always been characterized by its resilience and ability to adapt to changing circumstances. It is likely that other banks and financial institutions will step in to fill the gap left by Silvergate Bank, providing the necessary services to support the growth and development of the crypto industry.

Furthermore, the closure of Silvergate Bank could potentially lead to the emergence of new players in the space, who may be better positioned to meet the needs of the industry. This could lead to increased competition and innovation, which could ultimately benefit the entire crypto ecosystem.

In conclusion, the announcement by #Silvergate Bank that it will be shutting down is undoubtedly significant news for the crypto industry. However, it is important to remain optimistic and recognize that the industry has always been characterized by its ability to adapt to changing circumstances. While the closure of Silvergate Bank may create some short-term uncertainty, it could ultimately lead to new opportunities and developments in the space.

#bicasso  #crypto101  #antiscam

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After a series of events in 2022, the news about #Silvergate bank made investors wary because it was related to too many big names in the market.

💥😎Companies turn away from #Silvergate after rumors of shutdown.

💥😎Hong Kong Doesn't Care About China's CBDC.

💥😎 Stablecoin alliance established.

#BTC #hongkongweb3 #MarginVKT

#bitcoin experienced its fifth consecutive decline on Friday morning, following the announcement that #Silvergate Bank would be closing its doors. BTC price had been fluctuating during the first week of March, causing uncertainty in the market. Unfortunately, the second week began on a bearish note, with the coin's value plummeting by 11.25% over the last three days.

The value of Bitcoin has experienced a significant drop of over 8%, leading to a test of the $20,000 support level. While there may be a potential for a corrective increase, it is important to note that any upward movement may be restricted above the $21,200 threshold. 

The price of Bitcoin has encountered a significant obstacle in its upward trajectory, as it failed to surpass the resistance zone of $22,200. This has led to a surge in selling interest, causing a decline below the crucial support zone of $21,500.

The value of Bitcoin has plummeted by over 8%, resulting in a sharp decline towards the $20,000 support level. In fact, the price even dipped below this critical support zone, creating a new monthly low of approximately $19,800. Currently, the price is consolidating its losses and hovering around the $20,000 mark. It's worth noting that Bitcoin is now #trading below $20,800 and the 21 hourly simple moving average.

According to #priceanalysis BTC is currently facing a significant resistance level at $20,400, with the next major hurdle at $20,800. However, if BTC manages to sustain above $20,800, it could potentially break through a crucial bearish trend line forming with resistance near $21,300 on the hourly chart of the BTC/USD pair. The primary resistance level to watch out for is now at $22,000, and a close above this level could trigger a substantial increase in the coming days. The next key resistance level is at $22,600, and if BTC manages to surpass this level, it could gain bullish momentum and test $23,000. 

Bitcoin is facing a significant resistance level at $21,000, and if it fails to break through this level, it may continue to decline. In such a scenario, the immediate support level on the downside is expected to be around $19,800. However, if the price falls below this level, the next major support levels are at $19,400 and $19,200, respectively. In the worst-case scenario, if the price continues to decline, it may reach the $19,000 level, and any further losses may push it towards the $18,400 level.

KEY LEVELS :

RESISTANCE LEVEL : $20,400-$20,800

SUPPORT LEVEL : $19,700-$19,400

#coingabbar

A chance for Europe to profit from the crisis arises as #crypto companies in the US look for alternatives to #Silvergate and #SignatureBank .

In terms of crypto innovation, Europe has at times found it difficult to stay up with the United States. It has seemed that the U.S. has been the core of cryptocurrency from its birth, whether that be through stablecoins, trade volumes, or adoption.

However, the longer it takes for U.S. banks to declare that they are open for crypto business—that is, willing to accept some of the millions of dollars that were once parked at Silvergate—the more likely it is that crypto firms will choose a location like Europe, where regulations are more transparent and fiat payment rails are simpler.

The Markets in Crypto-Assets Act (MiCA), which provides legal clarity in Europe, stands in stark contrast to the murky regulatory landscape in the United States, where businesses appear to encounter new regulatory challenges every day. Any crypto organization's operations are put in an atmosphere that is getting more difficult as a result. This will be an important factor to take into account for both new and existing market participants.

Additionally, it appears that American politicians are making every effort to stifle dollar on-ramps into cryptocurrencies, leaving the door wide open for other countries to surpass the U.S. in terms of competitiveness.

The good news for investors is that the crypto business has become less dependent on fiat currency over the past few years when it comes to trading. Following the Silvergate issues last week, the percentage of market share of all volume on centralized exchanges for #Stablecoins has actually just risen to an all-time high as investors continue to favor stablecoins over conventional currency. Stablecoins now account for the great bulk of exchange volume, up from 79% to over 90% in only the last year.

Because there is less reliance on money, crypto investors are less negatively impacted by the U.S. banking shutdown. Stablecoins are becoming more and more popular among cryptocurrency investors as a medium of exchange, but not with the companies who run the trading platforms. These institutions will be the ones to suffer the most from a dollar (USD) shutdown first.

Without access to a U.S. bank, organizations like exchanges will need to modify the services they provide. Consider trading hours: If an exchange does not have access to USD payment networks that are available around-the-clock, it is very possible that it will only be able to serve consumers during U.S. trading hours. In this case, the opportunity cost of foregone trading tactics outside of trading hours might also hurt investment funds with U.S.-based investors.

Profits In Euros

Yet, Euro volumes demonstrate that what hurts one region, helps another. Early signs point to the euro perhaps benefiting greatly from a U.S. crypto banking ban, with volumes for the BTC-EUR pair surging as the Silvergate issues continued. The market share of the bitcoin-euro pair in relation to the US dollar reached a record high last week, jumping to 21% of BTC volumes from 7% in November.

Will a U.S. bank raise its hand to accept cryptocurrency deposits at this point? The trend of increasing euro volumes may continue if the response is no, at least not for a time.

The big question in the US is whether a bank will raise its hand. Given the consolidation of larger banks that we are currently witnessing in the banking industry, the bigger banks currently have no need to accept crypto deposits.

Smaller banks are those who need to draw in a new influx of deposits since they are struggling to compete in a market that is becoming more and more oligopolistic with companies like #JPMorgan Chase. In a perfect scenario, multiple smaller banks would accept cryptocurrency, distributing the risk more fairly across a few different institutions rather than having all cryptocurrency deposits concentrated in just a few, as it was in the past.

It might be some time before the next group of banks opens its doors to cryptocurrency since the smaller banks will view Silvergate and Signature as a glaring illustration of institutions who were unable to diversify their deposits to the extent that would have provided some protection against a bank run.

This creates a window of opportunity for Europe and the euro to establish themselves in a sector where they have recently lagged behind.