Year-to-year Bitcoin supply changes in Asia have shown significant fluctuations correlated with price. Since January, the supply change in Asia has increased sharply from around 4% to over 8% in mid-May, in line with Bitcoin’s price increase to over $70,000. It fell throughout early June but has since recovered 8%. This trend shows growing Bitcoin accumulation in the Asian market, likely driven by increased trading activity and investor interest in the region even during the recent recession. This.
Bitcoin supply changes over the past year in Asia. Source: Glassnode
Traditionally, Asian markets play a key role in influencing Bitcoin’s price trends. The long-term chart shows a notable pattern, where periods of high supply changes often coincide with large price movements. For example, during the 2017 price increase, a similar supply shift was observed and was followed by a significant price increase. Recent data reflects this historical trend, suggesting a continuation of this pattern into 2024.
Notably, during the strong bull run from 2020 to 2021, Asia broke the usual pattern observed in the Bitcoin market. Instead of accumulating Bitcoin as prices rose, Asian markets sold at market peaks. This behavior contrasts with previous cycles, for example in 2016, when Asian markets sold as Bitcoin rallied until 2017.
In 2021, this deviation was especially pronounced when the change in Bitcoin supply in Asia turned negative for the first time since Glassnode records began. This means that instead of accumulating or holding Bitcoin, there was a distinct decrease in the amount of Bitcoin held in the region during that period.
Although consolidation also took place at the end of 2017, the supply change has never regained the 10% peak since 2016. Currently, the supply change in Asia is approaching higher than over the past 8 years.
This continued increase in the supply of Bitcoin held in Asia reflects the region’s long-term impact on digital asset markets. As investor sentiment and market conditions evolve, the influence of Asian markets on Bitcoin supply and price fluctuations remains an important factor to monitor.
Bitcoin supply changes over the past year in Asia. Source: Glassnode
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