Emily Walker
Recent on-chain data indicates that US platforms have achieved a record high in Bitcoin reserves.
US Bitcoin Reserve Dominance Has Increased Significantly
According to Ki Young Ju, the founder and CEO of CryptoQuant, US-based platforms have experienced a notable surge in their Bitcoin dominance, as discussed in a recent X post.
The key metric in question is the “US to The Rest Reserve Ratio,” which compares the Bitcoin holdings of American platforms to those of international ones, including exchanges and large entities like spot ETFs.
A decrease in this ratio suggests that American platforms are losing coins to foreign counterparts, while an increase indicates a growing dominance of US entities.
Here’s a chart from Young Ju illustrating the trend in the Bitcoin US to The Rest Reserve Ratio over the last ten years:
The chart reveals that during the 2022 bear market, the Bitcoin US to The Rest Reserve Ratio fell below 1, indicating that US platforms held a smaller percentage of Bitcoin compared to offshore entities.
Throughout 2023, the metric remained flat near its lows, but began to rise towards the year’s end.
In 2024, the ratio jumped above 1 with a sharp increase and continued to trend upwards, aside from a brief period of sideways movement in Bitcoin’s price.
This shift towards US platforms can be attributed, in part, to the introduction of spot ETFs in the US at the beginning of 2024, which have gained popularity as an alternative method to invest in Bitcoin.
As a result of this upward trend, the Bitcoin US to The Rest Reserve Ratio has reached an all-time high, showing that US platforms now hold 65% more Bitcoin than their international counterparts.
Historically, when US dominance has increased, it has positively impacted Bitcoin’s price, similar to trends observed during the 2021 bull market. Therefore, monitoring this indicator could be crucial, as any further gains may also drive the price of the cryptocurrency upwards.
Current BTC Price
In the last 24 hours, Bitcoin has continued its downward trend, with its price now at $92,700.