James Richardson
The share of Bitcoin reserves held by U.S.-based entities has risen significantly, now surpassing non-U.S. holdings by 65%, according to data from CryptoQuant. This shift highlights growing institutional and governmental interest in Bitcoin within the United States.
CryptoQuant CEO Ki Young Ju revealed on X that the ratio of Bitcoin reserves held by U.S. entitiesโsuch as MicroStrategy, exchange-traded funds (ETFs), exchanges, miners, and the governmentโcompared to offshore entities increased sharply in recent months.
The ratio, which stood at 1.24 in September 2024, climbed to 1.66 by mid-December and slightly adjusted to 1.65 as of January 6. For most of 2023, when Bitcoin prices hovered below $30,000, offshore holdings exceeded those of U.S. entities. However, the current trend reflects a shift in Bitcoin ownership dynamics, driven by recent market developments.
Donald Trumpโs re-election as U.S. President and his announcement of plans to establish a national strategic Bitcoin reserve have bolstered market sentiment. These developments helped propel Bitcoin to an all-time high of $108,135.
Following Trumpโs victory, U.S.-based spot Bitcoin ETFs saw substantial trading activity, with billions in weekly net inflows. These ETFs now hold over $108 billion in net assets, representing 5.74% of Bitcoinโs market capitalization, according to SoSoValue.
Institutional Players Drive U.S. Bitcoin Holdings
MicroStrategy, the largest corporate holder of Bitcoin globally, continues to expand its reserves. The company recently purchased an additional 1,070 BTC, bringing its total holdings to 447,470 BTC. Co-founder Michael Saylor announced plans to raise $42 billion over the next three years to fund further acquisitions.
The U.S.โs rising dominance in Bitcoin reserves has sparked discussions in countries like Russia, Poland, and the city of Vancouver about establishing their own strategic Bitcoin reserves.
Debate Over Bitcoinโs Economic Role
Despite growing enthusiasm, some experts remain skeptical about the role of Bitcoin in national reserves. Steve Hanke, a professor of applied economics at Johns Hopkins University, expressed strong opposition to the idea of a U.S. strategic Bitcoin reserve.
Hanke argued that allocating savings to Bitcoin does not contribute to economic productivity. โSavings funneled into Bitcoin aren’t building factories, creating jobs, or driving innovation,โ he said in a recent X post, emphasizing that economic growth relies on investments that boost productivity.
A US BITCOIN STRATEGIC RESERVE = A STUPID IDEA.
Savings funneled into Bitcoin aren’t building factories, creating jobs, or driving innovation. pic.twitter.com/VaH0p7Y835
โ Steve Hanke (@steve_hanke) January 6, 2025
Current Bitcoin Market Trends
As of 12:30 p.m. in Hong Kong, Bitcoin was trading at $94,271, reflecting a 2.21% decline over the past 24 hours, according to PRIME. Despite short-term fluctuations, the long-term trend of rising U.S. Bitcoin holdings signals the growing institutionalization of the cryptocurrency market.
