Research suggests that Bitcoin (BTC) left the United States during the 2022 bear market.
On June 8, Glassnode, an on-chain analytics company, tweeted some unexpected findings regarding who is currently utilizing Bitcoin.
BTC supply moves to Asia
Over the past year, there have been major changes in the places where Bitcoin is stored and traded.
Glassnode’s most recent assessment of the BTC supply revealed a shift in its distribution, with a notable move away from the U.S. and towards Asia.
Since mid-2022, U.S. entities have seen a decrease of over 10% in the amount of the supply held and traded.
Europe’s proportion has remained roughly the same, meaning a transfer of resources from west to east has occurred.
“It is evident that there is a distinct divergence in the year-over-year change in the supply of Bitcoin according to geographical regions. The overwhelming predominance of US entities in 2020-21 has been reversed, with the US supply dominance declining by 11% since the middle of 2022,” remarked researchers from Glassnode.
The metric used to measure the phenomenon of Year-over-Year Supply Change is a probabilistic tool that makes assumptions about who owns the Bitcoin supply based on when it is transferred.
Glassnode’s guidance notes explain that geolocating Bitcoin supply is done on an entity basis, using probability. Timestamps of all transactions from an entity are compared to the working hours of various geographical regions to calculate the chance of the entity being located in the US, Europe, or Asia.
Year-over-Year Supply Change reveals that the U.S. share began to decrease in March 2021, but the decrease has been more rapid since May 2021.
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The results of the study come at a time when the geopolitical environment concerning crypto is undergoing significant changes.
The SEC is stifling innovation in the United States — according to 1inch co-founder.
In Hong Kong, exchanges were given permission to commence trading this month, whereas in the West, the U.S. taking legal action against key exchanges represented a pivotal event for the sector.
In an opinion article for MarketWatch, Brian Armstrong, CEO of Coinbase – one of those affected by the legal action – cautioned that inadequate regulation would put the United States at a disadvantage.
He wrote that the smart and tailor-made regulations of the 1990s and early 2000s allowed the U.S. to shape the Internet Age.
Regarding Hong Kong, Armstrong commented that it was not unexpected for China to be promoting the cryptocurrency narrative.
Magazine states that Bitcoin is heading towards “Net Zero” pledges.
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