Bitcoin supply is gradually shifting concentration from America to Asia and the increasing regulatory pressure on the crypto industry from United States regulators might be sparking the change. 

Crypto regulation in the US is becoming stricter, prompting some firms to consider relocation. Coinbase CEO Brian Armstrong even hinted at a possible relocation during a Fintech conference in London.

But these relocation plans may have crossed over to crypto assets holdings as Bitcoin supply in the US region is now declining. 

American Bitcoin Supply Drops Drastically

A blockchain analytics firm, Glassnode, reported that the year-over-year Bitcoin supply for America had dropped drastically with the formation of a divergence. Conversely, the asset supply spiked higher for the Asian region.

Assessing the #Bitcoin Year-over-Year Regional Supply Change, we can observe a dichotomy forming between the supply held according to US and Asia trading hours.

A near equal and opposite supply change can be noted, suggesting coins previously based in the US continue to transfer… pic.twitter.com/QMjz6sAajc

— glassnode (@glassnode) May 9, 2023

According to the report, the YoY Bitcoin supply change dropped by 7.5%. However, the data for Asian Bitcoin supply change showed a surge of 6.9%.

Glassnode indicated a growing dichotomy between Bitcoin’s “supply held according to Asia and US trading hours.” 

It further noted that tokens formerly held by wallets in the US are being moved to those within the Asia region. The report shows that the Bitcoin supply decline in the US started in early 2022.