Bitcoin is grabbing crazy headlines with the kind of bullish attitude it’s advocating through its price run. Right from MicroStrategy to Grayscale, institutions are participating in a mad race to hoard as many Bitcoin as they can to create Bitcoin scarcity. Large investment funds and institutions are gulping down the mined Bitcoin supply in a quest to top up their accounts with massive profits. In another motive, they plan to hedge rising inflation of fiat through crypto, specifically Bitcoin. Contrastingly, a recent trend shift was observed concerning the flow of Bitcoin. Where East Asia was a prominent buyer of the Bitcoin, the title seems to have felicitated North America.
According to a Reuters report, which draws data from Chainalysis, the number of North American users have jumped commendably over 7000 times with an aggregate of $3.4 billion in mid-November. However, East Asia is losing out on this with the drastic increase in net outflows compared to the net inflows. The net outflows currently record at 240,000 BTC whereas net inflows of 1,460 BTC in January.
Data from Chainalysis also indicates that the volumes of significant North American Exchanges have doubled recording a whopping 1.6 million bitcoin in value every week. Whereas, East Asia sees a reduced rise of 14%-16%. The East Asia dominated countries include Japan, China and South Korea.
Ciara Sun of Huobi Global Markets stated that,
Is the Bitcoin gravity turning towards North America?
In an investment wave, various American investment funds and investors work towards tightening their grip by purchasing Bitcoin. However, experts caution that the North American shift might not necessarily indicate a fundamental change. The possible cause of the drift might be due to the financial turmoil caused by the Covid-19 pandemic. Bitcoin recently surpassed its previous resistance level skyrocketing to a new all-time high.
James Quinn of Q9 Capital, a Hong Kong-based private wealth manager, provided his opinion on the same.
However, one thing to remember is that cryptocurrency markets are highly opaque compared to traditional financial markets and ambiguously regulated. Hence, drawing comprehensive data from this sector is rare. Therefore, it’s too early to predict something in this dynamic market. Although one thing is apparent, Bitcoin is already on a drive to mass adoption.
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