As the United States portion of Bitcoin’s supply has decreased over the previous two years, activity in Asia has increased.
New evidence reveals that Bitcoin left the United States during the lousy market in 2022. On June 8th, on-chain analytics startup Glassnode tweeted some startling findings on the demographics of Bitcoin users.
Bitcoin’s storage and trading environments have dramatically changed over the last 12 months. Glassnode recently examined the BTC supply, tracking the currency’s global movement, especially away from the U.S. and towards Asia.
More than 10% less of the supply has been controlled and sold by U.S. corporations since the middle of 2022.
Meanwhile, Europe’s share has maintained the same, translating a shift from the West to the East. The Year-over-Year Supply Change indicator is a probabilistic tool that makes assumptions about who owns the BTC supply based on how quickly it changes.
Probabilistic geolocation of Bitcoin supply is handled at the entity level. The Year-over-Year Supply Change graph shows a slowdown in U.S. production starting in March 2021 and then picking up speed in May of this year. The results appear when the crypto-related geopolitical environment is undergoing significant change.
This month, exchanges in Hong Kong were finally given the green light to begin offering trading. In contrast, in the West, legal actions in the United States against significant exchanges represented a turning point.
Coinbase CEO Brian Armstrong, a defendant in the lawsuit, wrote an article for MarketWatch expressing concern that lax regulation would hurt the United States.
For the same reasons as back then, Congress should act swiftly to establish comprehensive crypto law that protects consumers and encourages innovation. Regarding China’s efforts to influence the crypto narrative, Armstrong said it came as “no surprise.”
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