On-chain data shows that US-based platforms have recently seen their dominance in Bitcoin reserves skyrocket to a novel all-time high (ATH).
Bitcoin US reserves to rest ratio has increased recently
As noted by CryptoQuant founder and CEO Ki Adolescent Ju in the novel edition post on X, US-based platforms have recently seen an boost in Bitcoin dominance.
A significant on-chain metric here is the “US reserves to rest ratio”, which tracks the ratio of BTC holdings on US and offshore platforms. “Platforms” here include not only exchanges but also other gigantic entities such as spot ETFs.
When the value of this indicator drops, it means that coins are being transferred from US to foreign platforms. On the other hand, its growth means that US-based entities are gaining dominance.
Here is a chart shared by Adolescent Ju that shows the trend of Bitcoin US rate to reserve ratio over the last decade:
The value of the metric seems to have been riding an uptrend during the last couple of years | Source: @ki_young_ju on X
As shown in the chart above, the Bitcoin US to The Rest Reserve Ratio fell below 1 during the 2022 bear market, meaning US platforms had a smaller share of the BTC supply than offshore entities.
In 2023, the index continued to consolidate near its lows, but at the end of the year the trend changed again and this time the index began to rise.
Then in 2024, the indicator shot back above level 1 with a edged boost. This rapid growth trajectory continued throughout the year, except for the mid-phase, which coincided with a sideways movement in the BTC price.
The reason for this rotation of tokens into wallets associated with US-based platforms is partly due to the fact that spot ETFs were introduced in the US in early 2024 and have since become a popular alternative means of exposure to BTC price action.
After the recent continuation of growth, Bitcoin US to The Rest Reserve Ratio has reached a novel ATH, which corresponds to US entities holding 65% more BTC than foreign entities.
In the current cycle, the rise of US dominance has proven to be bullish for the asset price so far, as it did during the bull run of 2021. Thus, the indicator may be worth watching in the near future as any further increases in it could also lead to positive cryptocurrency price action .
BTC price
Bitcoin continued its recent bearish momentum over the past 24 hours as its price has now fallen to $92,700.
Looks like the price of the coin has been sliding down over the last few days | Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
