Bitcoin Regional Supply Change Shifts From US to Asia
![Bitcoin Supplies Shift to Asia as American War on Crypto Escalates](https://coinmetanews.com/wp-content/uploads/2023/05/Bitcoin-Regional-Supply-Change-Shifts-From-US-to-Asia.png)
[ad_1]
The regional supply change of Bitcoin is pivoting from the United States to Asia. A clear transition can be seen as American federal regulators ramp up efforts to quash the industry.
Crypto companies are not the only entities leaving the United States. It appears that Bitcoin investors are also turning to Asia as Uncle Sam tightens the screws on digital assets.
According to data from the on-chain analytics platform Glassnode, the year-over-year regional supply change has formed a divergence. A dichotomy has emerged between the supply held according to U.S. and Asia trading hours, it observed on May 9.
The data suggests that “coins previously based in the US continue to transfer to wallets located in Asia,” noted Glassnode.
The contrast is stark. The American year-on-year supply change decreased by 7.5%, while the Asian supply change increased by 6.9%.
![Bitcoin regional supply change - Glassnode](https://s32659.pcdn.co/wp-content/uploads/2023/05/supplychange-scaled.jpg.optimal.jpg)
Bitcoin Leaving American Shores?
The divergence began in the first half of 2022. Looking at the chart suggests it was around the time of the Terra/Luna ecosystem collapse. The dichotomy has accelerated since then and is showing no signs of reversing.
The geographical shift in Bitcoin supply is likely a direct result of a crackdown on crypto exchanges and wallet providers in the U.S.
The chart could also symbolize a geographical policy shift. Over the past year, the U.S. has become increasingly hostile towards crypto, whereas Asia is opening up to the industry.
America’s largest crypto exchange Coinbase has signaled its intentions to move offshore. The decision comes after a threat of enforcement action from the Securities and Exchange Commission.
Furthermore, Gemini has also stated it will open an offshore exchange following regulatory scrutiny. Bittrex shuttered its U.S. operations in March and filed for Chapter 11 bankruptcy protection this week following SEC action in April.
On May 9, two of the world’s largest market makers said they were halting U.S. crypto trading plans. Jane Street Group and Jump Crypto cited regulatory uncertainty for their decisions, with the latter mulling a move offshore.
Crypto Mining Crackdown
Pressure on American crypto mining firms is also likely to result in their relocation to friendlier jurisdictions.
When China banned Bitcoin mining, America became the beneficiary, but this appears to be short-lived. The Biden administration has proposed a 30% energy tax on BTC miners making operations costlier than they already are.
The net result is likely to be a talent, technology, asset, and digital finance innovation wasteland if Uncle Sam continues its war on crypto.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
[ad_2]
Source link