Bitcoin (BTC) supply flows East as the West faces intensified regulatory stress

By:
on Jun 9, 2023
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  • The crypto space encountered bearishness following amplified clampdowns.
  • While the US deals with regulatory pressure, Bitcoin supply has flowed to the East.
  • The US dominance in the digital markets continues to reverse.

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The cryptocurrency sector endured immense selling momentum after the Securities & Exchange Commission sued the two top crypto exchanges, Coinbase and Binance. While the United States and the West deal with heavy regulatory crackdowns, a massive amount of Bitcoin supply is flowing to the East.

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Glassnode’s latest publication indicates that the East has gained most of Bitcoin’s outflow from the West within the past year – with Europe’s supply nearly flat. The West, in this context, refers to the United States. Glassnode revealed;

“… as an increasingly hostile regulatory environment is established in the US, capital appears to be flowing out, and eastward in the digital asset sector.”

Source – Glassnode

Glassnode added that such developments highlight a risk-off environment as the remaining capital concentrates in more liquid majors. Also, the on-chain analytic platform noted an increased liking for stablecoin capital.

US crypto dominance reverses

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Glassnode observed divergences in Bitcoin’s year-over-year shift geographically, stating that the massive dominance by United States firms in 2020 – 2021 gas reversed, with US’s supply dominance declining by approximately 11% since mid-last year (2022).

Meanwhile, European markets have remained somewhat neutral within the past twelve months, whereas Asian trading hours showcase a substantial uptick in supply dominance.

Bitcoin Price and Volatility

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The latest crypto regulation wave saw Bitcoin price plummeting toward the $26K territory. Nonetheless, the bellwether crypto maintains above the crucial area of $26.3K. BTC changed hands at $26,589 at press time, with 515.8B in market cap.

Nonetheless, Bitcoin has shown long-term resilience as far as historical price actions and volatility are concerned.

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