Recent insights from on-chain analytics indicate that platforms based in the United States have reached unprecedented dominance in Bitcoin reserves.
Recent Surge in Bitcoin Reserves on US Platforms
Ki Young Ju, CEO of CryptoQuant, highlighted a significant uptick in the dominance of US-based Bitcoin holdings in a recent post on X. The key metric here is the "US to The Rest Reserve Ratio," which compares Bitcoin reserves held by American platforms to those managed by international ones. These platforms encompass not only exchanges but also major entities like spot exchange-traded funds (ETFs).
A decrease in this ratio suggests a shift of Bitcoin from US platforms to those overseas. Conversely, an increase signals a growing dominance of American platforms in the Bitcoin market.
Here’s the chart Ki Young Ju shared, illustrating this trend over the past decade:
The graph shows an upward trend in the metric over recent years | Source: @ki_young_ju on X
During the 2022 bear market, the ratio dipped below 1, indicating that US platforms held less Bitcoin compared to their offshore counterparts. In 2023, the metric hovered around these lows. However, moving into the end of the year, a noticeable reversal occurred, with the ratio climbing once more.
Throughout 2024, there was a significant spike, pushing the metric over the 1 mark, maintaining an upward trajectory despite a mid-year plateau in Bitcoin’s price movement.
A key factor in the shift is the introduction of spot ETFs in the US at the beginning of 2024, offering a popular alternative for gaining exposure to Bitcoin’s market movements.
With the trend continuing, the Bitcoin US to The Rest Reserve Ratio has achieved a new all-time high, marking a situation where US entities hold 65% more Bitcoin than their foreign counterparts.
Historically, an increase in US dominance correlates with positive price movements for Bitcoin, as seen during the 2021 bull market. This makes it a crucial indicator to watch, as further increases may boost Bitcoin prices again.
Bitcoin Price Update
Bitcoin has been on a downward trend over the last day, with its price now settled at around $92,700.
The recent days have seen a decline in Bitcoin’s price | Source: BTCUSDT on TradingView
Feature image credits go to Dall-E, data courtesy of CryptoQuant.com, and chart from TradingView.com.
