Asia takes the lead: crypto market liquidity is moving away from the US
Against the backdrop of a prolonged Bitcoin correction and a general weakening of risk appetite in the West, I observe a tectonic shift in the structure of global crypto liquidity. The analytical platform XWIN Japan, drawing on data from the Singapore-based Amber Group, records a steady trend: the center of gravity of the digital asset market is shifting from the United States to the Asia-Pacific region (APAC). This is not just a cyclical fluctuation, but a fundamental restructuring.
The key catalyst for this process has been the tightening of the Federal Reserve's monetary policy. Strong US employment data dashed hopes for an imminent rate cut, leading to a rise in government bond yields and a strengthening of the dollar. As a result, institutional investors began to massively exit risky assets, and Bitcoin once again came under pressure, briefly approaching the $60,000 mark. Spot Bitcoin ETFs, which previously served as the main growth driver, are now recording net outflows — the market's usual support is weakening before our eyes.
Asian trading hits records
But while American investors are moving into "defense," their Asian counterparts are, on the contrary, increasing activity. XWIN's on-chain analysis paints an impressive picture: the trading volume of the USDT stablecoin during Asian trading hours is steadily growing and is already matching, and sometimes surpassing, the figures of the US session. While in 2020 the US set the market's liquidity, now the center of gravity is inexorably shifting towards APAC.
This shift is also supported by infrastructure development in the region. Hong Kong is actively implementing tokenized bond projects, Japan is exploring blockchain finance, and South Korea is accelerating the development of stablecoins. Short-term sentiment is certainly weakened by the overall correction, but the long-term foundation of the industry in Asia continues to strengthen.
My expert assessment: For investors focused on the medium and long term, it is now critically important to shift focus from flows into US ETFs to stablecoin volumes and capital inflows into Asian jurisdictions. It is Asia, not the US, that will determine the next growth cycle. Ignoring this trend is a strategic mistake.