Bitcoin supply shifts from US holders to Asian wallets: Glassnode

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Istanbul, Turkey – April 28, 2022: Human hand putting bitcoin in wallet

Data from Glassnode reveals that Bitcoin supply has recently seen a shift from America-based wallets to those in Asia.

Bitcoin supplies held by Asian and American investors have recently taken opposite paths

According to data from on-chain analytics firm Glassnode, an interesting dichotomy has recently formed between different regional offerings of the cryptocurrency.

Glassnode has divided Bitcoin addresses into different regions based on the times they transacted. Geolocation of Bitcoin supply is performed probabilistically at the entity level, Glassnode notes. An entity here refers to one or more portfolios that are under the control of a single investor (or a group of investors).

The timestamps of all transactions created by an entity are correlated with the working hours of different geographical regions to determine the probabilities that each entity is located in the United States, Europe or Asia, explains the analysis firm.

The three main regions are the United States (13:00 to 01:00 UTC), Europe (07:00 to 19:00 UTC), and Asia (00:00 to 12:00 UTC). In the context of the current discussion, however, only supplies based in the United States and Asia are relevant.

Here is a graph that shows the trend of year-over-year supply change in these two regional Bitcoin supplies over the past few years:

It seems that the values ​​of the two metrics have been in exactly opposite directions in recent months | Source: Glassnode on Twitter

As shown in the chart above, the supply of Bitcoin held by US investors was growing faster and faster before and during the bull run in the first half of 2021, as the year-over-year variation steadily increased. .

The change slowed in the second half of the year, but remained positive, suggesting that supply was still growing, albeit at a slower pace. In 2022, however, the supply started to decrease, as the bear market took over and the crashes of LUNA and 3AC took place.

The year-over-year change in US-based BTC supply has continued to turn more negative since then and now stands at a value of -7.5%, suggesting that the supply has decreased by 7.5% since May 2022.

The Asian supply of Bitcoin, however, showed a very mixed behavior, as it started to increase just as US investors started to shed their holdings.

Interestingly, the rate at which the supply held by Asian traders has transformed is almost exactly the same as what US-based wallet balances have seen (although, of course, the change has been in the opposite direction).

Currently, the year-on-year change in Asian supply stands at +6.9%. The fact that Asian investors bought a similar amount to what US holders sold suggests a direct transfer of coins between the two supplies.

Now, as to why this continuous supply transition has taken place, the main reason is probably the fact that the United States has recently tightened regulations related to the cryptocurrency sector.

One of the most prominent examples of this was the regulatory crackdown that Coinbase recently saw from the Securities and Exchange Commission (SEC).

BTC price

As of this writing, Bitcoin is trading around $28,200, down 1% in the past week.

BTC surged over the past day | Source: BTCUSD on TradingView

Featured image from iStock.com, charts from TradingView.com, Glassnode.com

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