On Jan. 9, 2025, CryptoQuant released data showing that Bitcoin reserves held by U.S.-based entities are now 65% larger than those held offshore.
On Jan. 9, 2025, CryptoQuant released data showing that Bitcoin reserves held by U.S.-based entities are now 65% larger than those held offshore. The ratio of Bitcoin reserves held by U.S. entities compared to non-U.S. entities has surged to 1.65, up from 1.24 in September 2024. This marks a significant shift in Bitcoin's global holdings, with U.S. entities now holding the majority of Bitcoin.
The increase in U.S.-held Bitcoin reserves coincides with the rise in Bitcoin's price, which peaked at $108,135 in January 2025. This surge was driven by institutional interest, particularly from companies like MicroStrategy, the largest corporate holder of Bitcoin. MicroStrategy's holdings reached 447,470 BTC, valued at about $28 billion, after the company purchased 1,070 BTC in December 2024 for $94,004 per Bitcoin. The company has also raised $42 billion for further purchases, signaling its continued commitment to Bitcoin as a key asset.
The trend of rising U.S.-held Bitcoin reserves began in the second half of 2024 and was supported by the approval of Bitcoin exchange-traded funds (ETFs) in January 2024. These ETFs have collectively attracted over $106 billion in inflows, offering both institutional and retail investors easier access to Bitcoin. This shift toward U.S. dominance in Bitcoin holdings reflects growing confidence in the cryptocurrency and its institutional adoption.
The dominance of U.S. entities over offshore players starkly contrasts the trend of 2023, when offshore entities held the majority of Bitcoin reserves. The shift began as Bitcoin's price started to rise in late 2024, following positive market sentiment, partly fueled by the pro-crypto stance of former President Donald Trump. Trump’s re-election and support for establishing a national Bitcoin reserve helped boost confidence in Bitcoin's future.
Despite the rise in U.S.-held Bitcoin, offshore entities still control a significant portion of the total Bitcoin supply. The market shift indicates a growing role for U.S.-based entities and institutional investors in shaping Bitcoin's future, but it remains to be seen how this trend will develop in the coming years. Offshore holdings will likely continue to play a crucial role, although U.S. dominance is expected to persist for the time being.
Meanwhile, the broader crypto market has seen some corrections, with Bitcoin briefly dipping to $91,200 in the past 24 hours. The corrections were triggered by concerns about U.S. monetary policy tightening in 2025. Despite these fluctuations, the overall growth in U.S.-held Bitcoin reserves underscores the ongoing institutional interest and potential for further market developments in the coming months.
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