Asian Turn: Why Crypto Market Liquidity is Moving Away from the US
Against the backdrop of a prolonged Bitcoin correction and a general risk-off sentiment, institutional investors in the Asia-Pacific (APAC) region are showing an increasingly cautious stance. However, the key takeaway from the latest analytical report by Singapore-based Amber Group is not panic, but a fundamental shift in the market's center of gravity. The principle of "higher rates for longer" is reshaping global capital flows.
Amber Group is a professional market maker and digital asset manager from Singapore, whose analysis carries weight in the industry. Their latest report clearly shows that the familiar picture where the US dictates liquidity is becoming a thing of the past.
Why the market entered a correction
The trigger for the current correction was unexpectedly strong employment data from the US. These figures dashed hopes for an imminent easing of monetary policy by the Federal Reserve. As a result, bond yields and the US dollar index surged, forcing investors to reduce positions in risky assets. Bitcoin (BTC) briefly approached the $60,000 mark — a classic reaction to tightening liquidity.
Institutional demand is also weakening. Spot Bitcoin ETFs, which were the main driver of the rally earlier this year, are now seeing net outflows. The former pillar of growth — US institutional investors — is gradually losing its strength.
Liquidity shift towards Asia
However, in parallel with this, on-chain analysis from XWIN Japan, referenced in the report, reveals a different, longer-term trend. The trading volume of the stablecoin USDT during Asian trading hours is steadily increasing. Today, it not only matches the figures of the US session but at times even surpasses them.
If in 2020 the liquidity of the crypto market was primarily driven by the US, now the center of gravity is shifting to the APAC region. This is not just statistics — it reflects the maturity of Asian infrastructure. Hong Kong is actively developing tokenized bond projects, Japan is exploring blockchain finance, and South Korea is accelerating the adoption of stablecoins.
My expert conclusion: Short-term market sentiment remains weak, and we may see further pressure on BTC. But the long-term foundation of the industry continues to strengthen, particularly in Asia. Investors should stop focusing solely on flows into US ETFs and start closely monitoring funding rates, dollar liquidity, and capital inflows into Asian jurisdictions. This is where the new center of power in the crypto market is currently forming.