Asia’s Bitcoin supply soars amid shifting regulatory landscapes

As US regulatory pressure continues to weigh on the cryptocurrency industry, a new trend is beginning to take shape that will change the dynamics of global demand for Bitcoin.

The U.S. political environment is tightening the regulatory noose around the cryptocurrency and mining sectors, and traders within the border may be losing confidence in Bitcoin’s resilience as a result.

This shift is evident in the year-over-year (YoY) change in bitcoin supply on Glassnode, which tracks the amount of bitcoin held by community groups.

Bitcoin supply in the United States has fallen 11% year-over-year since June 2022, according to CryptoSlate analysis.

In contrast, the Asian cryptocurrency market saw a surge in Bitcoin supply. Businesses operating during Asian trading hours have increased their bitcoin holdings by 9.9% since June last year, according to Glassnode data, a record high.

Graph showing year-over-year changes in regional bitcoin supply from January 2022 to June 2023 (Source: glass node)

Asia’s fascination with Bitcoin has raised questions about possible drivers behind this shift.

As previously reported by CryptoSlate, the growing regulatory fever in the US has prompted traders to move away from Bitcoin and Ethereum and instead look to the perceived safety of stablecoins. . This defensive move by traders demonstrates the clear impact that regulation, or its threat, has on the behavior and decision-making of cryptocurrency market participants. Potential compliance-related penalties and crackdown risks can encourage safer investments, sometimes at the expense of higher-yielding investments.

While U.S. regulations cast a shadow over the cryptocurrency market, Asia is witnessing a more positive wave of regulatory change.

As reported by CryptoSlate, the Hong Kong Securities and Futures Commission (SFC) will be more crypto-friendly by granting licenses to more than eight cryptocurrency companies by the end of the year and easing regulatory requirements for cryptocurrency exchanges. paved the way for the environment.

In response to this flexible change, some cryptocurrency entities such as CoinEx are strategically leveraging Hong Kong’s crypto-friendly rules.

Meanwhile, Bitget has pledged to invest $100 million to strengthen the Web3 ecosystem in Asia. Additionally, growing speculation about the possibility of a Central Asian nation holding Bitcoin sovereign bonds reflects a shift in regional sentiment towards Bitcoin.

The article first appeared on CryptoSlate after Asian Bitcoin supply surged amid a changing regulatory environment.

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