Liquidity is moving from the US to Asia: Amber Group analysis points to a shift in the crypto market center
The digital asset market is undergoing a fundamental transformation. Amid the current correction and general risk-off sentiment, institutional investors in the Asia-Pacific (APAC) region are acting with increasing caution. However, the key takeaway I draw from the latest report by Singapore-based Amber Group is not about short-term sentiment, but a structural shift: crypto market liquidity is inexorably flowing from the US to Asia.
Reasons for the correction: macroeconomic backdrop
The correction we are observing has a classic macroeconomic underpinning. Stronger-than-expected US employment data dashed hopes for an imminent Federal Reserve rate cut. This triggered a rise in Treasury yields and a strengthening of the US dollar index. In such conditions, investors naturally reduce positions in risky assets, and Bitcoin (BTC) was no exception, temporarily approaching the $60,000 mark.
It is important to note that spot Bitcoin ETFs, which served as a powerful growth driver earlier this year, continue to record net outflows. The previous anchor for the bullish trend is gradually weakening.
Asia takes the lead
However, setting aside current volatility, the Amber Group report reveals a much more significant trend. Trading volumes of the stablecoin USDT during Asian trading hours are steadily rising. Today, they are not just catching up but sometimes surpassing figures from the US session. This is direct evidence that the center of gravity of market activity is shifting.
If in 2020 crypto market liquidity was primarily driven by the US, now, in my assessment, this balance is changing dramatically. Digital asset infrastructure in Asia is developing at an explosive pace: Hong Kong is implementing tokenized bonds, Japan is exploring blockchain finance, and South Korea is actively promoting the development of stablecoins.
My expert opinion: Investors who focus solely on flows into US ETFs should broaden their horizons. The long-term foundation of the industry is strengthening precisely in the Asia-Pacific region. Watch interest rates, dollar liquidity, and capital inflows into Asia — these indicators now speak louder than short-term Bitcoin price fluctuations.