The analyst explained why it might be time to get ready for a new Bitcoin bull run, based on the growing pattern in this on-chain metric.
The Bitcoin US To Rest Reserve Ratio Has Seen A Reversal Recently
In a CryptoQuant Quicktake post, an analyst discussed the recent trend of the BTC US to Rest Reserve Ratio. This index tells us, as its name suggests, the ratio between the total Bitcoin reserves of the central platforms based in the US and those of the world. Platforms here refer not only to trading, but also to other organizations such as banks and funds.
If the value of this metric increases, it means that the cargo is currently moving from offshore fields to the US. Such a trend could be a sign of demand for US-based investors. On the other hand, the bearish indicator suggests that foreign platforms have a high demand for BTC right now as American exchanges are losing dominance over them.
Now, here is a chart showing the trend in the 100-day Exponential Moving Average (EMA) of Bitcoin US to The Reserve Ratio over the past year and a half:
As shown in the graph above, the 100-day EMA Bitcoin US to Rest Reserve Ratio has been declining at the beginning of the year, but during the past few months, its value has decreased and shown a reversal. This would mean that BTC transfers are now happening from global bases to US based ones. On the chart, the price marks the last example of an indicator showing this trend.
It would appear that the previous reversal in the metric occurred in the latter half of 2023 and was accompanied by a BTC rally that would eventually take the commodity to a new all-time high (ATH). The sharpest part of this increase in the index came in the first half of 2024. The reason for this acceleration was the introduction of exchange-traded funds (ETFs) in the US, which quickly gained popularity among investors.
From the graph, it can also be seen, that a short while after the price reached the ATH, the metric had broken out and saw a directional reversal. Thus, the ETF area could not maintain the same level of interest.
The analyst notes that the continued consolidation of BTC this year can be traced back to this reduction in the storage space of US platforms. As the index has shown a reversal recently, it is possible that Bitcoin will see the return of bullish momentum, if the previous pattern is to pass.
BTC price
Following a 2% jump over the past 24 hours, Bitcoin has returned to the $68,700 level.
