Asia’s Bitcoin (BTC) supply has reached an all-time high (ATH) and currently accounts for 7.3% of all Bitcoin supply, while US and EU Bitcoin reserves are in negative supply annually.
The chart below shows Asia’s Bitcoin supply volume since 2010. Except for brief periods in 2016-2017 and 2020, the region has struggled with negative supply levels.
Asia’s Bitcoin reserves started to rise above zero at the beginning of the year and have reached ATH since November. The region currently holds 7.3% of the total Bitcoin supply, which equates to 1,402,330 bitcoins.
USA and EU
While Asia rallied, the EU and the US continued to lose Bitcoin.
The chart below shows the growth of EU Bitcoin reserves since the beginning of 2010. While the region has struggled with sub-zero supply levels like Asia, it has relatively improved by the end of 2019.
EU Bitcoin reserves marked an ATH at the end of 2018, accounting for about 6.25% of the total supply. However, this percentage dropped to minus 2.5% in mid-2019 and minus 5% in 2020.
EU reserves reached zero in mid-2020 before falling to minus 5% in mid-2021. It is currently on a recovery trajectory, but remains around minus 1.25%.
Unlike Asia and the EU, the US has recorded a worsening scenario with Bitcoin reserves. As you can see from the graph below, US Bitcoin reserves were mostly above zero between 2010 and 2016.
After falling below zero in early 2016, it struggled to turn positive by the end of 2020. However, the supply of Bitcoin in the United States is declining, even though it will rise above zero in 2021.
US Bitcoin supply ATH was recorded in 2011 and is about 30% of the entire supply. However, the US was unable to maintain the positive supply level it regained in 2021 and fell below zero in early 2022. Currently, US Bitcoin reserves are almost minus 8% of the entire Bitcoin supply.
Asia in cryptocurrency
Recent studies have turned the spotlight on Asia for growing cryptocurrency adoption in the region. A study by HSBC and KPMG revealed that a quarter of the 6,472 start-ups operating in the region are cryptocurrency-related businesses. Another report from July 2022 concluded that mass cryptocurrency adoption is expected in the Asia Pacific region.
Major countries in the region are also taking significant steps to further increase cryptocurrency adoption, supporting these findings.
Japan is making decisions to further increase adoption by relaxing regulatory obligations and tax burdens and developing better KYC regulations and Anti-Money Laundering measures to create a healthy environment for investors. Additionally, the country is experimenting with Central Bank Digital Currencies (CBDC) and Metaverse to further increase adoption.
On the other hand, China may remain against cryptocurrency, but Hong Kong’s recent initiatives have led the public to question whether China will use Hong Kong to catalyze the cryptocurrency market.
In July 2022, the Hong Kong Monetary Authority said cryptocurrency would soon integrate with traditional finance. Hong Kong is also preparing for this future by experimenting with CBDCs and issuing policy statements to regulate cryptocurrency use.
Singapore is emerging as another cryptocurrency of the region. The country has been crypto-friendly for years and has built a strong base for crypto companies and enthusiasts. The country remains one of the world’s largest cryptocurrency hubs, despite the decision to tighten its cryptocurrency regulations following the collapse of Three Arrows Capital. Like Japan and Hong Kong, Singapore is participating in the CBDC and Metaverse projects while strengthening regulations to promote cryptocurrency adoption.
In addition to these countries, Vietnam, the Philippines, India, Pakistan, and Thailand are among the top ten countries with the most cryptocurrency adoption, according to Chainalysis’ latest adoption report. In addition, Vietnam and the Philippines emerged as the first and second countries in the world most adapted to cryptocurrencies.