AmericaAsiaBitcoinBitcoin NewsBTCUSDTcrypto

Asia Sees Rising Bitcoin Supply As US Intensifies War On Crypto

Bitcoin supply is gradually shifting concentration from America to Asia and the increasing regulatory pressure on the crypto industry from United States regulators might be sparking the change. 

Crypto regulation in the US is becoming stricter, prompting some firms to consider relocation. Coinbase CEO Brian Armstrong even hinted at a possible relocation during a Fintech conference in London.

But these relocation plans may have crossed over to crypto assets holdings as Bitcoin supply in the US region is now declining. 

American Bitcoin Supply Drops Drastically

A blockchain analytics firm, Glassnode, reported that the year-over-year Bitcoin supply for America had dropped drastically with the formation of a divergence. Conversely, the asset supply spiked higher for the Asian region.

According to the report, the YoY Bitcoin supply change dropped by 7.5%. However, the data for Asian Bitcoin supply change showed a surge of 6.9%.

Glassnode indicated a growing dichotomy between Bitcoin’s “supply held according to Asia and US trading hours.” 

It further noted that tokens formerly held by wallets in the US are being moved to those within the Asia region. The report shows that the Bitcoin supply decline in the US started in early 2022.

Asia Sees Rising Bitcoin Supply As US Intensifies War On Crypto
Bitcoin is growing by over 1% on the chart l BTCUSDT on Tradingview.com

The dichotomy deepened with the collapse of the Terra Luna ecosystem and hasn’t indicated a positive turn since then.

US Regulations Create Pressure On The Regional Crypto Industry

America is intensifying its crackdown on crypto with strict regulations and enforcement actions. The US SEC’s ongoing war with Ripple since 2020 has caused the crypto asset to decline massively without hope of regaining 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.

Coinbase is considering moving away from America as the crypto tension in the country rises. 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 could hinder the growth of crypto businesses. Already, the Coinbase exchange has secured a new license in Bermuda to operate a crypto derivatives exchange. 

Recently, two prominent market makers, Jane Street Group and Jump Crypto, decided to stop crypto trading. The companies stated that the reason behind such a decision lies with the growing crypto crackdown by US regulators.

Another US-based crypto exchange Gemini released a statement about its plans to relocate to Asia. The exchange mentioned expanding its global engineering and operations in India.

Featured image from Pixabay and chart from Tradingview




Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button