Home Bitcoin News U.S. Entities Dominate Bitcoin Reserves, Holding 65% More Than Offshore Counterparts

U.S. Entities Dominate Bitcoin Reserves, Holding 65% More Than Offshore Counterparts

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U.S. Bitcoin Holdings Surge to 65% Above Offshore Entities

Recent data from Crypto Quant has revealed a significant shift in the distribution of Bitcoin reserves, with U.S. entities now holding 65% more bitcoin than their offshore counterparts. As of January 6, 2025, the ratio of U.S. bitcoin holdings to non-U.S. holdings stood at 1.65, marking a sharp increase from 1.24 in September 2024. This surge highlights the growing dominance of U.S.-based institutions and entities in the Bitcoin market.

Factors Driving the Surge in U.S. Bitcoin Holdings

The trend toward U.S. dominance in Bitcoin holdings began in the latter half of 2024, with a notable increase between September and December. One of the most significant catalysts for this shift was the re-election of Donald Trump as U.S. President. Trump’s pro-crypto stance and his promise to establish a national strategic Bitcoin reserve generated significant optimism in the market. This positive sentiment helped drive Bitcoin’s price to new heights, including a record high of $108,135.

The Role of Bitcoin ETFs and Corporate Holdings

Alongside Trump’s re-election, the approval and subsequent trading of Bitcoin exchange-traded funds (ETFs) also played a pivotal role in increasing U.S. bitcoin holdings. The surge in trading volume and investor interest, particularly in spot Bitcoin ETFs, led to substantial inflows. These ETFs collectively hold over $108 billion in Bitcoin, representing approximately 5.74% of the total Bitcoin market capitalization, according to So Value.

MicroStrategy, the world’s largest corporate holder of Bitcoin, has also been a major contributor to this rise. The company, co-founded by Michael Saylor, has continued to accumulate Bitcoin as part of its strategic reserve. In December 2024, MicroStrategy added 1,070 BTC to its holdings, bringing its total to 447,470 BTC. The company has plans to raise $42 billion in capital over the next three years to fund additional Bitcoin purchases, further solidifying its position as a major player in the U.S. Bitcoin landscape.

A Shift from Offshore to U.S. Dominance

For much of 2023, the balance of Bitcoin reserves favored offshore entities, with holdings outside the U.S. surpassing those within the country. However, the market dynamics shifted dramatically in the past few months. With the growing influence of U.S.-based entities, including large institutional players and ETFs, the ratio of U.S. holdings has surged, surpassing the offshore entities for the first time in several years.

The 1.65 ratio observed in January 2025 reflects this significant shift. While offshore holdings still play a crucial role in the Bitcoin market, the growing dominance of U.S. entities could have far-reaching implications for the future of Bitcoin’s price and its institutional adoption.

The Future of U.S. Bitcoin Reserves

As the U.S. continues to consolidate its position as the leading holder of Bitcoin, the future of Bitcoin adoption in the country looks increasingly promising. The increasing participation of corporate entities like MicroStrategy, along with the rise of Bitcoin ETFs, suggests that U.S. dominance in Bitcoin reserves could continue to grow. The market’s positive reaction to Trump’s re-election and his Bitcoin-related policies further fuels this bullish sentiment.

However, the global nature of Bitcoin means that offshore entities will continue to hold significant reserves. As the market matures, it will be interesting to see how the balance between U.S. and offshore holdings evolves, and whether U.S. entities will maintain their dominant position or face competition from emerging markets and regulatory shifts abroad.

Conclusion

The latest Crypto Quant data underscores the growing influence of U.S. entities in the Bitcoin market. With U.S. holdings now surpassing those of offshore counterparts by 65%, and the continued expansion of Bitcoin ETFs and corporate reserves, the U.S. is poised to maintain its dominance in the Bitcoin space. The shift from offshore to U.S. dominance, driven by institutional investments and pro-crypto policies, could signal the beginning of a new era for Bitcoin as it becomes more deeply integrated into the financial system.

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Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

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