Bitcoin Supply Shift: US Holdings Decrease by 10% while Asia Takes the Lead

According to on-chain analytics firm Glassnode, since mid-2022, the Bitcoin supply held and traded by institutions and individual investors in the United States has decreased by over 10%.

Over the past year, the Bitcoin supply has undergone notable geographical shifts. In its latest report on BTC supply, Glassnode measured the movement of Bitcoin globally. The data reveals that the Bitcoin supply has decreased by more than 10% in the United States while experiencing a significant increase in Asia.

The year-over-year BTC supply change based on geographical regions shows a clear divergence. The dominance of US entities, which was prevalent during 2020-2021, has witnessed a marked reversal, with the US supply dominance falling by 11% since mid-2022.

While European markets have remained relatively neutral over the past year, a substantial increase in supply dominance can be observed during Asian trading hours. The chart below illustrates the current changes in Bitcoin supply compared to the same period in 2022. According to the data, the Bitcoin supply decline in the US started in March 2021 but has only shown a rapid increase since May 2023.

These shifts in Bitcoin supply holdings have raised several questions among market analysts and cryptocurrency enthusiasts. The decrease in US holdings and the corresponding increase in Asian dominance indicate a changing landscape in the global Bitcoin market. It is important to note that this analysis is based on on-chain data and does not provide a complete picture of all Bitcoin holdings globally.

The decline in Bitcoin supply held by US entities could be attributed to various factors. Regulatory uncertainties surrounding cryptocurrencies, including debates on taxation, licensing, and potential legislation, might have contributed to a cautious approach by US investors. Additionally, the maturing cryptocurrency ecosystem in Asia, particularly in countries like Vietnam, China, South Korea, and Japan, has likely led to an increase in local participation.

The rise in Asian Bitcoin supply dominance suggests that the region is becoming a key player in the cryptocurrency market. This shift aligns with the growing interest and adoption of cryptocurrencies in Asia, as well as the development of blockchain technology and digital payment systems in the region.

It will be interesting to see how these changes in Bitcoin supply holdings continue to evolve over time. As the cryptocurrency market matures and regulatory frameworks become clearer, investors and institutions worldwide will likely adjust their strategies accordingly. Understanding the geographical distribution of Bitcoin holdings provides valuable insights into the dynamics of the global cryptocurrency market and its potential future trends.

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