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Is Bitcoin’s recent price rally leaving Asian crypto-assets behind?

Arijit Sarkar



Credit: flickr

The crypto-industry has recorded unprecedented milestones this year, including substantial value recovery, mass adoption, integrations and partnerships. And while growing trust in crypto has led to an increase in investments and trading value of the BTC-dominated market, the predominant Asian crypto-linked stock market has surprisingly missed out on the spike.

The same was revealed by a Bloomberg report which expanded on the stark comparison between Chinese and U.S. players. It also attributed the thaw of the “crypto-winter” to the the entry of mainstream institutions such as Facebook and JP Morgan into the cryptospace.

The report reflected on the growth of U.S. Bitcoin-exposed assets such as Grayscale and Riot Blockchain, which grew by 189% and 78%, respectively. Further, the top three Asian contributors, China, Japan, and South Korea, recorded huge losses. The report read,

“Monex Group Inc., which owns the Japanese exchange and former hacking victim Coincheck Inc., is down more than 2% this year in Tokyo. The brokerage is counting on its investment in Coincheck to help its securities arm make up lost territory against its competitors.”

Source: Bloomberg

The graph above also points out,
“Remixpoint Inc., operator of crypto exchange BITPoint, has lost 10% so far in 2019. Vidente Co., a shareholder of South Korean exchange Bithumb, is down 14% this year, while BC Technology Group Ltd., which launched new crypto exchange ANXONE earlier this year is also down 35% amid a wider selloff among Hong Kong-listed stocks.”

This huge gap in revenue generation has led several speculators and industry experts to believe that the Asian market will lag further in terms of stocks’ price valuation. In order to bridge the gap between the Asian and the U.S. market, businesses within the crypto-industry must guide each other in terms of how they are able to convert their crypto revenue into fiat dollars.

While Asia’s crypto-backed assets are not performing in sync with its western counterpart, the market is poised to witness continuous investments, given its link to lower risk for the general public.

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