Amber Group Analysis: Asian crypto market intercepts liquidity from the US amid correction
Against the backdrop of a prolonged Bitcoin correction and a general decline in risk appetite, institutional investors in the Asia-Pacific (APAC) region are demonstrating an increasingly cautious approach. However, beneath this external downturn lies a fundamental shift: the center of gravity for crypto liquidity is steadily moving from West to East. The key principle of the current moment—'higher rates for longer'—is reshaping the map of global capital flows.
Singapore-based crypto firm Amber Group, specializing in institutional trading, market making, and asset management, has released a fresh analysis shedding light on how major players in the region assess the current situation. The company's data indicates that unexpectedly strong U.S. employment figures dashed market hopes for an imminent Fed rate cut. This triggered a sharp rise in government bond yields and a strengthening of the U.S. dollar index.
In response, investors began massively reducing positions in risky assets. Bitcoin (BTC) briefly approached the $60,000 mark, while spot BTC-ETFs, which served as the main growth driver earlier this year, are recording sustained net outflows. The American 'bullish' narrative is gradually fading.
Asia Takes the Lead
However, looking at on-chain metrics reveals a more complex and intriguing picture. A parallel analysis of USDT stablecoin trading volumes, conducted by platform XWIN Japan citing Amber Group data, highlights an opposite trend. USDT trading volume during Asian trading hours is not just recovering—it is steadily growing and already matches, and at times surpasses, figures from the U.S. session.
If in 2020 crypto market liquidity was primarily driven by the U.S., the center of gravity is now gradually shifting to Asia. The digital asset infrastructure in the APAC region is developing at an explosive pace: Hong Kong is actively implementing tokenized bonds, Japan is exploring blockchain finance, and South Korea is accelerating the development of stablecoins.
Short-term sentiment is undoubtedly weak, and the market will continue to feel pressure from U.S. macroeconomic factors. But the long-term foundation of the industry is strengthening precisely in Asia. Investors seeking the full picture should look not only at flows into U.S. ETFs but also at funding rates, dollar liquidity, and capital inflows into Asian jurisdictions.
Expert opinion: The shift in liquidity to Asia is not just a temporary phenomenon but a structural trend that will only intensify. The U.S. market remains hostage to the Fed's tight monetary policy, while Asian centers offer more flexible regulation and a real influx of retail and institutional capital. Long-term investors should closely monitor activity during Asian hours—this is the new barometer of market health.