Brazil has overtaken the U.S. to become the world's top crypto consumer, and is currently the largest bear market in the world.

- What's going on?

Brazil emerged as the world's largest cryptocurrency user during a bear market crash, derailing plans by the U.S., which had always held this position.

According to data reported by major blockchain media outlets such as CoinDesk, Cointelegraph and The Block, during a period of dramatic digital asset price volatility, Brazilians continued to actively circulate and hold crypto while other countries including the United States saw decreased activity.

Why is the bear market such an important indicator?

A bear market is when the price of a digital asset goes down for an extended period, and most retail investors tend to disappear from the market, so countries that are still using crypto during this time reflect how it's actually being used in everyday life, not just for profit.

In the case of Brazil, a commonly cited factor in foreign media is that the Brazilian real has fluctuated so much over the past few years that people have turned to digital assets as an alternative for storing their savings and conducting cross-border transactions.

What's the other side of this?

The U.S., once the world's largest crypto hub, has given up its position in such a period of time due to market failures that have caused users in the United States to become less active, coupled with regulatory constraints that make companies and mainstream users more cautious.

Meanwhile, Brazil is moving forward with a formal regulatory framework for digital assets that allows businesses and consumers to operate confidently, unlike some countries where the rules are unclear.

What does this have to do with Thai investors?

This data suggests that the main drivers of crypto are expanding from developed countries to emerging markets, which is similar to Thailand and its neighbors in the region where people use cryptocurrencies for financial need rather than just profit.

For those who follow the industry in Thailand, a point of interest is the regulatory trend with the SEC (Thailand) (Thailand) being the main body that oversees the crypto market in the country and platforms like Bitkub as the primary trading channel charged in baht. The lessons from Brazil may be case studies of markets where rules are clear and practical applications continue to expand.

In addition, in neighboring countries like Myanmar, the use of digital assets is playing a role in contexts where traditional financial systems are inaccessible that align with usage patterns in emerging economies around the world.

Frequently Asked Questions

Since when is Brazil number one?
According to the data, Brazil came out on top during its worst bear market period, overtaking the United States which had held that position.

What is the main reason why Brazil uses crypto so much?
Mainstream media highlighted macroeconomic factors and local currency fluctuations, as well as a clearer regulatory framework.