On-chain data shows that US-based platforms have recently seen the dominance of Bitcoin reserves reach a new all-time high (ATH).
Bitcoin US To Rest Reserve Ratio Shot Up Recently
As revealed by CryptoQuant founder and CEO Ki Young Ju in a new post on X, US-based platforms have seen their Bitcoin dominance grow recently.
The on-chain correlation indicator here is the “US to The Rest Reserve Ratio,” which keeps track of the ratio between BTC held on American platforms and those on shore. ‘Platforms’ here include not only exchanges, but also other large entities such as exchange-traded funds (ETFs).
If the value of this metric decreases, it means that the transfer of coins takes place from American social networks to other countries. On the other hand, the rise means that US-based organizations are gaining dominance.
Now, here is a chart shared by Young Ju that shows the trend of Bitcoin US to The Rest Reserve Ratio over the last ten years:
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 graph above, the Bitcoin US to The Rest Reserve Ratio dropped below the 1 mark during the 2022 bear market, which means that American platforms hold a smaller share of BTC supply than offshore companies.
The index continued to rally sideways during its decline in 2023, but towards the end of the year, the situation finally changed, as the metric started to rise this time.
2024 then caused the index to retreat more than 1 level with a sharp move. This trend of rapid rise has been maintained throughout the year, except for the intermediate phase corresponding to the sideways movement of the BTC price.
The reason for this shift of tokens to wallets related to platforms based in the US is partially dependent on the fact that ETFs are available in the US in early 2024 and have established themselves as popular alternatives to exposure to BTC’s. value action.
After the recent continuation of the rise, the Bitcoin US to Rest Reserve Ratio has reached a new ATH with US entities holding 65% more BTC than foreign ones.
In the current cycle, US government growth has proven to be strong for asset prices so far, as it happened during the 2021 bull market. Therefore, the index could be one to keep an eye on in the near future, as any further increase in it could also lead to positive price action for the cryptocurrency.
BTC price
Bitcoin continued its recent bearish momentum over the past 24 hours as its price has now dropped 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