American Bitcoin Dominance Sets New Record: US Platforms Hold 65% More BTC Than Non-US

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Data from on-chain sources indicates that U.S.-based platforms are currently holding more Bitcoin than ever before, marking a new peak in their Bitcoin reserves.

Bitcoin US To The Rest Reserve Ratio Has Shot Up Recently

According to a recent post by Ki Young Ju, the founder and CEO of CryptoQuant, there has been an increase in the influence of Bitcoin among platforms headquartered in the United States.

The crucial on-chain metric to consider is the “US to Global Reserve Ratio” for Bitcoin, which monitors the proportion of Bitcoin held by American platforms versus those based offshore. This term ‘platforms’ encompasses not only cryptocurrency exchanges but also other significant entities such as spot exchange-traded funds (ETFs).

As a researcher observing this particular metric, I noticed that when its value decreases, it signifies an exchange of digital currencies shifting from American platforms towards international ones. Conversely, an increase in the metric’s value suggests that U.S.-based entities are strengthening their control or dominance in the market.

Presently, let me share with you the graph provided by Young Ju, which illustrates the evolution of the Bitcoin US to The Rest Reserve Ratio during the last ten years.

According to the graph shown earlier, the U.S.-Bitcoin Reserves Ratio dipped below 1 during the 2022 cryptocurrency market slump, indicating that American platforms controlled less than half of the Bitcoin supply compared to foreign entities at that time.

Throughout 2023, the indicator tended to hover near its lowest points, showing no clear direction. However, as the year drew to a close, the pattern changed, and the indicator began an upward trajectory instead.

2024 saw the indicator spike again to levels above 1, propelled by a strong upward trend. This steep ascent persisted all year long, save for a brief period matching the stagnation phase in Bitcoin’s price chart.

The reason for moving tokens into wallets linked to American platforms is partly because Bitcoin-linked exchange-traded funds (ETFs) became available in the US at the beginning of 2024 and have since gained popularity as an alternative method to invest in Bitcoin price fluctuations.

Recently, the proportion of U.S. entities owning Bitcoin versus the rest of the world has hit an all-time high (ATH), with Americans now controlling approximately 65% more Bitcoin than foreign entities.

In the present phase, an increase in American influence has, up until now, boosted the asset’s value much like it did during the 2021 bull market. Consequently, this trend could serve as a useful indicator to monitor in the coming days, since any further escalation might similarly spur favorable price movements for cryptocurrencies.

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2025-01-10 14:11