Tectonic Plate Shift: Crypto Market Liquidity Moves from the US to Asia — Amber Group Analysis
Against the backdrop of a prolonged correction in the cryptocurrency market, institutional investors in the Asia-Pacific (APAC) region are demonstrating an increasingly cautious approach. However, according to data from Singapore-based platform Amber Group, this region is becoming a new epicenter of liquidity, gradually displacing the traditional dominance of the United States.
The key trigger for the current correction was unexpectedly strong employment data from the US, which virtually dashed market hopes for an imminent rate cut by the Federal Reserve. The reaction was immediate: Treasury yields and the US dollar index surged, forcing investors to reassess their risk portfolios. As a result, Bitcoin (BTC) again approached the $60,000 mark, while spot Bitcoin ETFs continue to record net capital outflows, depriving the market of one of its main growth drivers from the start of the year.
Asia Takes the Lead
However, while American investors are moving into safe-haven assets, a different picture is unfolding on the opposite side of the world. An on-chain data analysis conducted by XWIN Japan based on Amber Group's report points to a structural shift. The trading volume of the stablecoin USDT during Asian trading hours is steadily growing and is now almost on par with, and at times even surpassing, figures from the US session.
If in 2020 the center of gravity for the crypto market was the US, today, based on my assessment of Amber Group data, the liquidity center is inexorably shifting to Asia. This is not just a temporary phenomenon but a long-term trend, reinforced by infrastructure development in the region. Hong Kong is actively implementing tokenized bond projects, Japan is exploring decentralized finance, and South Korea is fostering the growth of stablecoins.
My professional opinion: Investors accustomed to focusing solely on capital flows into US ETFs should broaden their analytical toolkit. The current situation is not just a correction but a paradigm shift. Monitoring Fed rates and the dollar remains important, but it is Asian liquidity, capital inflows into the region, and the development of local projects that will determine the medium- and long-term trajectory of the market. Ignoring this shift means looking at cryptocurrencies through the rearview mirror.