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

On-chain data shows the US-based platforms have recently seen their Bitcoin reserve dominance spike to a new all-time high (ATH).

Bitcoin US To The Rest Reserve Ratio Has Shot Up Recently

As pointed out by CryptoQuant founder and CEO Ki Young Ju in a new post on X, the platforms based in the US have seen their Bitcoin dominance grow recently.

The on-chain indicator of relevance here is the “US to The Rest Reserve Ratio,” which keeps track of the ratio between the BTC holdings of the American platforms and that of the offshore ones. ‘Platforms’ here include not just the exchanges, but also the other large entities like spot exchange-traded funds (ETFs).

When the value of this metric goes down, it means a transfer of coins is occurring from the American platforms to foreign ones. On the other hand, it going up implies the US-based entities are gaining dominance.

Now, here is the chart shared by Young Ju that shows the trend in the Bitcoin US to The Rest Reserve Ratio over the past decade:

As displayed in the above graph, the Bitcoin US to The Rest Reserve Ratio fell under the 1 mark during the 2022 bear market, implying the American platforms held a smaller share of the BTC supply than the offshores entities.

The indicator continued to consolidate sideways around its lows during 2023, but towards the end of the year, the trend finally shifted again, with the metric starting on a rise this time.

2024 then made the indicator shoot back above the 1 level with a sharp surge. This trajectory of rapid increase maintained throughout the year, except for a phase in the middle that coincided with the sideways movement in BTC’s price.

The reason behind this rotation of tokens into the wallets associated with US-based platforms is partially down to the fact that the spot ETFs were introduced in the US at the start of 2024 and have since established themselves as a popular alternate means of exposure into BTC’s price action.

Following the latest continuation of the rise, the Bitcoin US to The Rest Reserve Ratio has reached a new ATH that corresponds to the American entities holding 65% more BTC than the foreign ones.

In the current cycle, a growth in US dominance has proven to be bullish for the asset’s price so far, just like it did during the 2021 bull market. Thus, the indicator may be to keep an eye on in the near future, as any further increases in it might also lead to positive price action for the cryptocurrency.

BTC Price

Bitcoin has only continued its recent bearish momentum during the last 24 hours as its price has now dropped to $92,700.