Bitrabo Editorial
Recent data indicates that platforms based in the United States are increasing their Bitcoin reserves, which could have implications for the price of BTC.
The Rise in Bitcoin’s US Reserve Ratio
According to a recent post by Ki Young Ju, CEO of CryptoQuant, there has been a notable flow of Bitcoin from international exchanges to those in the US.
The specific metric of interest is the “US to The Rest Reserve Ratio,” which measures the amount of Bitcoin held by US-based entities like exchanges and investment funds compared to those held by platforms elsewhere.
An increase in this metric indicates that more Bitcoin is being transferred to US platforms. Conversely, a drop suggests a rise in the holdings of international platforms.
Here’s a chart illustrating the Bitcoin US to The Rest Reserve Ratio over the last ten years:
The chart indicates a significant decline during the bearish market of 2022, reaching a low in 2023. This suggests a major shift in Bitcoin supply, with tokens moving to offshore wallets.
However, in 2024, the situation appears to be changing, as the ratio has begun to climb, indicating a recovery of dominance for US-based platforms.
This trend is primarily driven by the approval of spot exchange-traded funds (ETFs) in the US, which allow traditional investors to engage with Bitcoin’s price.
Since these funds were approved by the US Securities and Exchange Commission (SEC) earlier this year, their introduction likely contributed to the rise in the US to The Rest Reserve Ratio.
What might this increase imply for Bitcoin? The chart shows that previous significant uptrends in this ratio have aligned with past bull markets.
The spike leading to Bitcoin’s all-time high earlier this year also coincided with an uptick in this metric, although it was not as pronounced as the rises seen before the bull markets of 2017 and 2021.
Based on historical trends, it’s conceivable that Bitcoin could experience a positive impact from this supply shift to US exchanges in the current climate as well.
Current BTC Price
After showing a sustained bullish trend over the previous day, Bitcoin has climbed back above the $65,000 mark.