Gemini

Shift

United

Biden

Bitcoin

Bitcoin investors are following the lead of crypto companies in leaving the United States as regulators tighten their grip on digital assets. According to the on-chain analytics platform Glassnode, the year-over-year supply change has formed a divergence between U.S. and Asia trading hours. The data suggests that “coins previously based in the US continue to transfer to wallets located in Asia.” 
The American year-on-year supply change has decreased by 7.5%, while the Asian supply change has increased by 6.9%. This divergence started in the first half of 2022 and has accelerated since then, showing no signs of reversing. 
This 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, with the U.S. becoming increasingly hostile towards crypto while Asia is opening up to the industry. 
Coinbase, America’s largest crypto exchange, has signaled its intention to move offshore following a threat of enforcement action from the Securities and Exchange Commission. Gemini has also announced plans to open an offshore exchange, while Bittrex shuttered its U.S. operations and filed for Chapter 11 bankruptcy protection following SEC action in April. 
Two of the world’s largest market makers, Jane Street Group and Jump Crypto, have also halted their U.S. crypto trading plans, citing regulatory uncertainty. The latter is mulling a move offshore. 
The pressure on American crypto mining firms is also likely to result in their relocation to friendlier jurisdictions. While America benefited from China’s ban on Bitcoin mining, the Biden administration’s proposed 30% energy tax on BTC miners will make operations costlier than they already are. 
If Uncle Sam continues its war on crypto, the net result is likely to be a talent, technology, asset, and digital finance innovation wasteland. Asia is becoming the new haven for Bitcoin investors, and the trend is likely to continue until the U.S. government adopts a more crypto-friendly stance. 
In conclusion, the data from Glassnode suggests that Bitcoin investors are also turning to Asia as crypto companies leave the United States. The shift in Bitcoin supply is likely a direct result of a crackdown on crypto exchanges and wallet providers in the U.S. If this trend continues, the U.S. risks losing its position as a leader in digital finance innovation. The government needs to adopt a more crypto-friendly stance to prevent a talent drain and technology exodus. 
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The post <a rel="nofollow" href="https://bitcoinworld.co.in/bitcoin-supplies-shift-to-asia-as-american-war-on-crypto-escalates/">Bitcoin Supplies Shift to Asia as American War on Crypto Escalates</a> appeared first on <a rel="nofollow" href="https://bitcoinworld.co.in">BitcoinWorld</a>.

Bitcoin Supplies Shift to Asia as American War on Crypto Escalates

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