Paradigm shift: crypto market liquidity is moving from the US to Asia — Amber Group analysis
Against the backdrop of a prolonged Bitcoin correction and a general cooling of risk appetite in global markets, analysts are recording a fundamental shift in the structure of crypto liquidity. Singapore-based digital asset group Amber Group has released a report that clearly indicates: the market's center of gravity is gradually shifting from the United States to the Asia-Pacific region (APAC).
Macroeconomic Background: Higher Rates, Lower Risks
The key catalyst for the current correction was unexpectedly strong US employment data, which dashed hopes for an imminent easing of the Federal Reserve's monetary policy. Rising bond yields and a strengthening US dollar index triggered a classic "flight to risk." Institutional investors, especially in the West, began reducing positions, leading to a short-term drop in BTC to around $60,000. Spot Bitcoin ETFs, which previously served as the main driver of the rally, continue to record net capital outflows. This indicates that the former pillar of growth—American institutional capital—is gradually weakening.
Asian Activity: A New Epicenter
However, in parallel, analysts from Amber Group and the XWIN Japan platform note an opposite trend. Trading volumes of the USDT stablecoin during Asian trading hours are not only catching up to the US session but regularly surpassing it. While in 2020 market liquidity was primarily driven by the US, the situation has now changed dramatically. On-chain data confirms that Asian traders and institutions are ramping up activity, offsetting capital outflows from the West.
Infrastructure Boom in APAC
The shift in liquidity is not a coincidence but the result of targeted infrastructure development. Hong Kong is actively implementing projects with tokenized bonds, Japan is legalizing and developing blockchain services, and South Korea is accelerating the integration of stablecoins into the financial system. Short-term sentiment may remain bearish, but the long-term foundation of the industry in Asia is strengthening every day.
My expert opinion: Investors accustomed to focusing solely on flows into US ETFs should reconsider their perspective. The next bull cycle may be initiated not by Wall Street, but by capital from Hong Kong, Singapore, and Seoul. Keep an eye on dollar liquidity in Asia—this is the new market barometer.