Over the past year, there has been a significant shift in the distribution of Bitcoin ownership, with a decrease of more than 10% in supply held and traded by US entities and a noticeable increase in Asian market dominance. This interesting change, revealed in recent research by on-chain analytics firm Glassnode, points to a migration of Bitcoin from west to east, while Europe’s share remains stable.
The Year-over-Year Supply Change metric, a probabilistic tool that makes assumptions over Bitcoin supply ownership based on transaction timestamps, shows a decline in the US share of the cryptocurrency since March 2021, with an accelerated drop beginning in May 2021. This geographical shift in Bitcoin’s supply comes at a unique moment in the ever-evolving geopolitical landscape surrounding cryptocurrencies.
In the race for global recognition and integration, countries like Hong Kong have begun opening the doors to Bitcoin trading, while legal proceedings against major exchanges in the United States are seen as watershed moments for the industry. Notably, Coinbase CEO Brian Armstrong expressed his concerns over strict regulations disadvantaging the US in an opinion piece for MarketWatch, urging lawmakers to pass comprehensive legislation that fosters innovation and supports consumers.
As Asia starts to gain more influence in the world of cryptocurrencies, more eyes are focused on how the US will respond in terms of regulation and support for the shifting dynamics. Armstrong’s opinion highlights the opportunity for the US to “seize the historic opportunity presented by crypto” and reaffirm its position as a global leader in technology and innovation.
As for Europe, its relatively steady supply share suggests that it remains a consistent player in the cryptocurrency market, occupying a stable position in the midst of global supply shifts. However, the clear migration of Bitcoin from the US to Asia, as evidenced by Glassnode’s data, indicates a new era of blockchain dominance, with Asian markets becoming increasingly influential in the world of cryptocurrencies.
Source: Cointelegraph
