Retail traders in the Asia-Pacific region are becoming more active in Bitcoin, with growth outpacing that of traders in the U.S. A report from Gemini and Glassnode indicates that retail participation in Asia is expanding significantly faster than in the U.S. and Europe, excluding exchange-traded funds and exchange flows.
Glassnode analyzed Bitcoin transaction timestamps to assess market trends, revealing increased retail engagement in Asia-Pacific. This indicates a shift in market dominance, which is also reflected in Bitcoin supply growth across various regions.
Since Bitcoin’s cycle low in December 2022, the Asia-Pacific region has seen a 6.4% year-over-year increase in supply, while the U.S. experienced a 5.7% decline and Europe had a 0.7% drop. This trend highlights the growing influence of the Asia-Pacific region in the crypto market, according to Glassnode.
The involvement of institutional investors in the U.S. is driving a shift in Bitcoin investment, particularly after the launch of spot Bitcoin ETFs. While these ETFs have attracted significant capital in the U.S., Asian retail traders are leading outside ETFs and exchanges. Analysts anticipate introducing U.S. spot ETFs in January 2024 will alter investor behaviour and create new opportunities for retail and institutional investors to engage with Bitcoin.
Glassnode emphasizes that increased education and awareness of Bitcoin lead to a more mature investor profile. As knowledge and accessibility improve, growing retail engagement in the Asia-Pacific region will further influence the global Bitcoin market.
Recent on-chain data from Binance indicates a rise in small Bitcoin holders, reflecting increased retail interest and optimism. This trend coincides with rising institutional adoption, particularly following the approval of BTC ETFs, resulting in holdings increasing from 650,000 BTC to over 1,250,000 BTC in 2024. Additionally, over 50% of Bitcoin remains untouched for over two years, and 86% is profitable. Accumulation is rising, with 228,000 BTC added monthly, and the accuмulator addresses the acquisition of 495,000 BTC per month.
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