- According to data, the Bitcoin supply held and traded by US institutions has decreased by more than 10% since mid-2022.
- Europe’s share has remained relatively stable and indicates a redistribution of Bitcoin from west to east.
- The dominance of US institutions, which was prominent in 2020-2021, has reversed significantly since mid-2022.
According to research, Bitcoin supply in the US has been decreasing since mid-2022; the dominance of US institutions is declining.
Bitcoin Supply in the US Has Decreased by 10% According to Data
According to data, the Bitcoin supply held and traded by US institutions has decreased by more than 10% since mid-2022. In contrast, Europe’s share has remained relatively stable and indicates a redistribution of Bitcoin from west to east.
Researchers at Glassnode identified a significant divergence in BTC supply changes based on geographic regions. The dominance of US institutions, which was prominent in 2020-2021, has reversed significantly since mid-2022, with US supply dominance decreasing by 11%. Meanwhile, significant increases in Bitcoin supply have been observed during Asian trading hours.
Glassnode used the Year-on-Year Supply Change metric to measure this phenomenon. The metric makes probabilistic assumptions about Bitcoin supply ownership based on the timing of transactions. By associating the timestamps of transactions with the working hours of different geographic regions, it determines the likelihood of Bitcoin institutions being located in the US, Europe, or Asia. The decrease in US Bitcoin ownership began in March 2021, but according to data revealed by the Year-on-Year Supply Change metric, this decrease has accelerated significantly in May 2023.
Regulatory Climate Shapes BTC Distribution
These data are consistent with the current geopolitical landscape regarding cryptocurrencies, which is experiencing significant turbulence. While Hong Kong recently allowed exchanges to trade cryptocurrencies, the United States is facing legal processes targeting major exchanges. Such developments have sparked debates about the impact of regulations on the cryptocurrency industry.
Coinbase CEO Brian Armstrong warned against bad regulations that could disadvantage the US. Armstrong emphasized the need for smart and tailored regulations, similar to those that defined the Internet Age in the 1990s and early 2000s, and urged Congress to seize the historic opportunity presented by cryptocurrencies and pass comprehensive legislation that protects consumers while promoting innovation.
Regarding China’s influence on the cryptocurrency narrative, Armstrong noted that the country’s active role in shaping the industry was not surprising. Glassnode’s research highlights the changing landscape of Bitcoin ownership, showing that Asia has emerged as a dominant region. As the dynamics of the cryptocurrency market evolve, the impact of this change in Bitcoin ownership on global cryptocurrency markets and the development of regulatory frameworks worldwide will become apparent over time.
