The American Securities and Exchange Commission (SEC) which is engaged in a true war battle with the entire crypto industry while Asia seems to be opening the doors for innovations such as Bitcoin (BTC) and other crypto. It appears to be the perfect ingredient for a true shift in overall crypto adoption.
A while ago you could read in the Bitcoin news that the American dominance with regard to bitcoin holdings is declining as more and more bitcoin flows to Asian wallets. This development has now gained momentum and the crypto news of the past week perfectly illustrates why.
Bitcoin shift from west to east
According to a tweet from crypto analytics firm Glassnode, the king of cryptocurrencies is migrating from the United States to Asia.
A clear divergence is visible in the year-over-year BTC supply change based on geographical regions. The extreme dominance of US entities in 2020-21 has clearly reversed, with US supply dominance falling by 11% since mid-2022.
European markets have been fairly neutral over the… pic.twitter.com/5AwNBYK6BZ
— glassnode (@glassnode) June 8, 2023
Since mid-2022, the amount of BTC held by US entities has fallen by as much as 11 percent. At the same time, Europe’s share increased by only 1.1 percent, which translates into a redistribution from west to east. The dominance of Asia in that respect has shot up by no less than 9.9 percent
The share of BTC supply held by US entities started declining in March 2021 but gained momentum in May of this year.
The benchmark used here is the Year Over Year Supply Change: a probabilistic tool that makes assumptions about ownership of the BTC supply based on when it moves. It is therefore not 100 percent watertight, but it does give an indication of how the current circulating supply is distributed.
SEC Chases Crypto Industry While Asia Welcomes
The global shift is often driven by the hostile actions of the US Securities and Exchange Commission (SEC) and the positive developments in crypto adoption in Asia. While the SEC is making it increasingly difficult for crypto companies, Asia seems to want to welcome them with open arms.
Hong Kong is the figurehead of the growing adoption in the east: since June 1, crypto exchanges have been allowed to apply for a license in the country and many crypto firms are eager to get started here. It wants to manifest as an actual ‘crypto hub’ and the US financial watchdog seems to want to contribute to this by chasing companies away.
Over the past week, the SEC’s charges against Binance and Coinbase took the front page in what appears to be another regulator’s attack battle.