Analysts at Amber Group: The liquidity center of the crypto market is irreversibly shifting to Asia.
Against the backdrop of a prolonged Bitcoin correction and a general cooling of risk appetite, the key theme for institutional investors is becoming the principle of "higher rates for longer." However, as my analysis of data from the Singapore-based Amber Group shows, this is not the only significant trend. The global liquidity landscape is undergoing fundamental changes.
Amber Group is one of the leading players in digital asset management in the Asia-Pacific region (APAC). Their latest report sheds light on how major Asian investors perceive the current market conditions and points to a tectonic shift in capital allocation. While the US market shows signs of weakening, Asia is increasing its presence.
Why the Market Entered a Correction: The Macroeconomic Background
According to Amber Group data, stronger-than-expected US employment data dashed hopes for an imminent Fed rate cut. This triggered a rise in government bond yields and a strengthening of the US dollar index. In response, investors predictably reduced their exposure to risk assets, and Bitcoin (BTC) briefly approached the $60,000 mark.
This is a classic reaction to monetary policy tightening. Institutional demand, which was fueled by spot Bitcoin ETFs earlier this year, is also weakening. We are seeing net outflows from these instruments—the previous growth driver is gradually losing its momentum. The market is moving away from risk, and this is evident.
Liquidity Shift: Asia Takes the Lead
Alongside this, my analysis of on-chain data from XWIN Japan, embedded in the Amber Group report, reveals a completely different, longer-term trend. The trading volume of the stablecoin USDT during Asian trading hours is steadily growing. It now not only matches but periodically surpasses the figures of the US session.
If in 2020 the liquidity of the crypto market was primarily driven by the US, now the center of gravity is inexorably shifting to Asia. This is not a temporary phenomenon but a structural shift. The digital asset infrastructure in the APAC region is developing at a explosive pace: Hong Kong is implementing tokenized bonds, Japan is exploring blockchain finance, and South Korea is fostering the development of stablecoins.
Short-term sentiment is certainly weak, but the long-term foundation of the industry continues to strengthen. Investors who want to stay one step ahead should shift their focus from exclusively US ETF flows to the dynamics of dollar liquidity and capital inflows into Asia.
My expert opinion: The shift in liquidity to Asia is not just a reaction to the current correction, but a reflection of the mature and diversified development of the crypto industry outside the US. Ignoring this trend could be a serious mistake for those accustomed to focusing solely on Western markets. Asia is forming a new pole of power, and its influence will only grow.