Asia sees rising supply of Bitcoin as US intensifies war on crypto
Bitcoin supply is gradually shifting its concentration from America to Asia, and the increasing regulatory pressure on the crypto industry from US regulators may trigger the change.
Crypto regulation in the US is getting stricter, which is getting some firms to consider relocation. Coinbase CEO Brian Armstrong even hinted at a possible move during a Fintech conference in London.
But those relocation plans may have spilled over into crypto asset holdings as Bitcoin supply in the US region is now declining.
US Bitcoin Supply Drops Drastically
A blockchain analytics firm, Glassnode, reported that the year-on-year supply of Bitcoin to America had dropped drastically with the formation of a divergence. Conversely, asset inflows rose higher for the Asian region.
Evaluate #Bitcoin Regional supply change from year to year we can observe a dichotomy that forms between the supply according to the opening hours in the USA and Asia.
An almost equal and opposite supply change can be noted, suggesting that previously US-based coins continue to transfer… pic.twitter.com/QMjz6sAajc
— glassnode (@glassnode) 9 May 2023
According to the report, the YoY Bitcoin supply change fell by 7.5%. However, the data for Asian Bitcoin supply changes showed a 6.9% increase.
Glassnode indicated a growing dichotomy between Bitcoin’s “supply held according to Asia and US trading hours.”
It further noted that tokens previously held by wallets in the US are being moved to those in the Asia region. The report shows that the decline in Bitcoin supply in the US started in early 2022.
The dichotomy deepened with the collapse of the Terra Luna ecosystem and has not indicated a positive turn since then.
US regulations are putting pressure on the regional crypto industry
America is intensifying its Decomposition of crypto with strict rules and enforcement measures. The US SEC’s ongoing war with Ripple since 2020 has seen the crypto asset decline massively with no hope of recovery anytime soon. The only hope for the Ripple community lies in the outcome of the upcoming summary judgment.
In April, the US Securities and Exchange Commission (SEC) issued a Wells notice to Coinbase. It cited possible future legal action against the exchange.
Coin base is consideredis moving away from America as crypto excitement in the country increases. The exchange’s CEO Brian Armstrong mentioned a potential move during last month’s Fintech Week in London.
According to Armstrong, crypto regulation in the US still lacks clarity. So such an environment can hinder the growth of crypto businesses. Already has the Coinbase exchange secured a new license in Bermuda to operate a crypto derivatives exchange.
Recently, two prominent market players, Jane Street Group and Jump Crypto, decided to stop crypto trading. The companies stated that the reason behind such a decision lies in the growing crypto crackdown from US regulators.
Another US-based crypto exchange Gemini has issued a statement about the plans to move to Asia. The exchange mentioned expanding its global construction and operations in India.
Featured image from Pixabay and chart from Tradingview
