- Asian Bitcoin investors remain wary of putting their money in cryptocurrency despite the dip in its price since January.
- The selling pressure from Bitcoin investors is at its highest in over two years.
Asian Bitcoin investors have no interest in ‘buying the dip’ despite the recent volatility in cryptocurrency’s price. Meanwhile, investors in the US and Europe continue to increase their holdings.
A new report by the blockchain analysis firm Glassnode shows that selling pressure from countries within the world’s largest continent is the highest in the last two years. These nations are still on the road to recovery from the inflationary pressures levied by the COVID-19 pandemic and its economic impact.
Not only does this impact investments in crypto tokens, but the overall investment sentiment in Asia has ‘weakened,’ according to the Asian Development Bank’s (ADB) latest reading of the markets.
Bitcoin investors in Asia have historically preferred selling. Even during 2021’s bull run, Asian participation in the markets was minimal.
Asian countries remain wary of Bitcoin and other crypto tokens
Even with Bitcoin on an upward march, Japan, China, and other regional powers continue to put their faith in US treasury bills and gold — a hyperbole considering that many have protested against a US-led, globalized world. China, for instance, has repeatedly threatened to liquidate its holdings but continues to maintain a healthy supply of US treasury bills on its books.
During the COVID-19 pandemic, countries like Thailand, Japan, and India saw double-digit increases in their gold holdings.
Even though El Salvador has set the stage for national Bitcoin holdings, the world is still wary of the crypto asset due to its fragile price. Data shows that countries prefer assets that may be low-yielding, but are safe — exactly like US treasury bills and gold.