TheCryptoBoard
Image default
News

United States Bitcoin Supply Plunges Over 10%, Asian Markets Win Big: Glassnode Data

  • Bitcoin supply has dropped over 10% across the United States in the last two years as adoption grows in other jurisdictions. 
  • The Asian market remains the most significant gainer since 2021, with slightly over 11%, while Europe recorded modest growth. 
  • Analysts point fingers at the growing uncertainty in United States digital asset regulation as a major factor in the decline. 

Often warned by industry executives, the United States is losing its grip on digital assets more significantly in Bitcoin (BTC) although a much safer investor atmosphere could cause a turnaround.

New data from on-chain analytics firm Glassnode show that the 2022 bear market affected the United States market more than other jurisdictions in terms of growth and adoption. Since mid-2022 the amount of Bitcoin traded by US firms has dropped by 11%, with most tricking into Asia.

A clear divergence is visible in the year-over-year BTC supply change based on geographical regions. The extreme dominance of US entities in 2020-21 has clearly reversed, with US supply dominance falling by 11% since mid-2022,” Glassnode researchers noted.

The Asian market recorded a 9.9% increase throughout 2022 but still lags behind US high levels of Jan 2021. European markets have maintained their position recording a slight increase of 1.1% in BTC supply dominance.

European markets have been fairly neutral over the last year, whilst a significant increase in supply dominance is visible across Asian trading hours.”

Europe has become an attractive spot in driving crypto investments after it began drafting the Markets In Crypto Asset (MiCA) regulation. The regulation seeks to unify cryptocurrency regulation across the jurisdiction and clear uncertainty amongst other things in the region. Many commentators have tipped MiCA to be the “turning point” in crypto regulation and positioned Europe at the center of digital asset adoption.

Asia steals the show

Several US crypto executives have berated the state of things in the sector following the Securities and Exchange Commission’s (SEC) enforcement-by-regulation approach. This year, Republican lawmakers also blasted the Commission’s Chairman Gary Gensler for his hostile stance against digital assets.

At a hearing in the House Financial Service Committee in April, lawmakers grilled Gensler for the lack of clarity in the sector with Rep Tom Emmer accusing him of driving investments to China. “You’re pushing start-ups into the hands of the Chinese Communist Party,” she said.

China is reportedly making plans to reconsider its harsh stance on digital assets as Hong Kong has allowed exchanges to offer trading services and is playing down plans for a state-owned exchange. The renewed push among exchanges for the Asian market also points to a larger interest in web3 and Bitcoin.  

Related posts

Venezuela Turns To Crypto For Oil Sales To Evade Fresh Round Of U.S. Sanctions

Ondrej Simon

FTX Sues Sam Bankman Fried’s Parents To Recover Millions In ‘Misappropriated’ Funds

Ondrej Simon

Report: Cryptocurrencies Make Up A Sizeable Portion Of Whistleblowing Activity In The US

Ondrej Simon