Asia emerges as Bitcoin’s new engine, but is it enough to sustain the rally?
Bitcoin continues to trade around $113,500, after a sharp move earlier in the week. Market data shows that the Asian trading session is generating superior returns compared to the US and Europe, but experts warn that the momentum may be temporary.
Asia’s returns far exceed the West
According to Kaiko data, cumulative returns in the Asian session reached nearly 45% over the past 12 months, compared to 33% in the US and 28% in the EU. This reflects the growing heat from retail markets in South Korea, Japan and Singapore.
“APAC trading volume has increased by more than 70% year-on-year, reaching nearly $2.5 trillion as of August,” said Ryan Chen, an analyst at Matrixport. “Regulatory clarity in Hong Kong and Singapore, coupled with the stablecoin boom in Asia, has helped change the landscape.”
Asia Premiums Strengthen Regional Role
The Kimchi Premium phenomenon – a Bitcoin price premium on South Korean exchanges like Upbit and Bithumb – has remained around 10-12% throughout the third quarter, its highest level since 2021, indicating strong domestic demand despite global volatility.
“Capital is clearly shifting to the East. BTC reserves on US exchanges are down, while volumes on Asia-led Bybit, Binance, and OKX are up,” Chen noted.
Can Asia Lead the Growth Cycle?
Jeffrey Wong, an expert at HashKey Capital, said the current rally “cannot be separated from the global macro backdrop.”
“Asia could amplify Bitcoin’s rally thanks to retail inflows and regional price differentials. But sustaining the second phase of the bull cycle will require USD liquidity, Fed policy, and strong US institutional participation,” Wong explained.
Outlook
While Asia’s rally is providing a short-term advantage, the market still faces risks:
Global liquidity: depends on the Fed’s next rate cut.
Leverage volatility: Liquidation earlier this week reminded investors of high risks.
Institutional investment: US and Europe still play a role in shaping the long-term trend.
Bitcoin gained 0.6% in the past 24 hours, continuing to hover above $113,000, as investors weigh whether Asian money could spark the next wave of growth.