According to recent data from CryptoQuant, Bitcoin reserves held in the US significantly exceed offshore holdings, indicating a growing interest from institutional investors.
Growth of Bitcoin Reserves in the US
As of January 9, US entities' Bitcoin reserve share reached an all-time high, exceeding offshore reserves by 65%. The ratio of US to offshore Bitcoin holdings climbed from 1.24 in September 2024 to a peak of 1.66 in December and now stands at 1.65. CryptoQuant CEO Ki Young Ju explains this by comparing the Bitcoin holdings of known US entities, such as MicroStrategy and spot Bitcoin ETFs, to those of offshore entities.
Institutional Interest in Bitcoin
The increase in US-held reserves coincides with Bitcoin’s price rise. In September 2024, when Bitcoin was trading at $60,000, offshore entities held the majority of reserves. By January 2025, Bitcoin had crossed the $100,000 mark, and US reserves' dominance hit record levels. MicroStrategy, the largest corporate Bitcoin holder, recently purchased 1,070 BTC. Meanwhile, US-listed ETFs launched in January 2024 have recorded inflows of $106.82 billion.
Market Correction and Its Causes
Bitcoin’s price, after soaring past $100,000, retraced to $93,000, which analysts view as a healthy correction. CoinGlass reports that $521 million was liquidated in the last 24 hours, with $345 million from long positions. This liquidation was triggered by Bitcoin briefly dipping to $92,500 due to concerns over the Federal Reserve’s monetary tightening in 2025.
The rising institutional interest and market correction emphasize the importance of changing dynamics in the Bitcoin market. Despite current price fluctuations, the growing reserves held by US entities reflect sustained interest in this asset.
