Data from CryptoQuant shows that the amount of Bitcoin stored by American-based entities has grown substantially more than that stored by offshore entities.
As of January 9th, the proportion of Bitcoin (BTC) held by American entities has hit a record high, representing a 65% increase compared to the amount held by entities outside the US, according to information from CryptoQuant.
From September 2024, the proportion of Bitcoins held in the U.S. compared to those held offshore has significantly increased. It peaked at approximately 1.66 in December, and currently, it remains slightly lower at 1.65.
The CEO of CryptoQuant, Ki Young Ju, shared that their metric measures the amount of Bitcoin held by recognized American entities such as MicroStrategy, Bitcoin ETFs, trading platforms, miners, and the U.S. government against the holdings of identified offshore entities.
Institutional demand fuels Bitcoin rally
The surge in US-held Bitcoin reserves coincides with Bitcoin’s price increase.
By September 2024, most Bitcoin reserves were controlled by entities outside of the U.S., as the cryptocurrency was valued at $60,000. However, in January 2025, Bitcoin surpassed $100,000, reaching a high of $108,135, and it was American entities who saw their control over Bitcoin reserves reach unprecedented levels.
The dominance has been driven by heightened institutional interest.
In simple terms, MicroStrategy, a company known for holding the most Bitcoin among corporations, made another Bitcoin purchase from December 30 to December 31, 2024. The total cost was about $101 million, with each Bitcoin priced at an average of $94,004. This recent buy increased their total Bitcoin holdings to approximately 447,470 BTC. These BTC are worth around $27.97 billion and account for roughly 2.1% of the total supply of Bitcoin that will ever be in circulation.
In a similar fashion to past transactions, MicroStrategy utilized the money gained from selling a convertible bond to finance the latest acquisition. The company’s bold approach towards Bitcoin demonstrates the increasing interest in Bitcoin amongst institutional investors in the U.S.
As an analyst, I’ve noticed that US-listed spot Bitcoin ETFs, which debuted in January 2024, have attracted inflows totaling $106.82 billion so far, based on data from Sosovalue. These Exchange-Traded Funds (ETFs) serve as a regulated and streamlined avenue for both institutional and individual investors to gain exposure to Bitcoin.
Market corrections
Bitcoin’s unrealized profit margins have shrunk amid the ongoing price correction.
Following a surge above $100,000, Bitcoin has since dropped to $93,000. This decline is considered a healthy correction by analysts, given the recent upward trend.
As a researcher observing the cryptocurrency market, I’ve noticed a substantial decrease in traders’ on-chain unrealized profits due to the ongoing Bitcoin price correction. This dip is a healthy response following a rally that propelled us beyond $100k, according to my findings as head of research at CryptoQuant.
In the last day, approximately $521 million has been withdrawn from the crypto market. Out of this amount, about $345 million was from long-term investments. This withdrawal was prompted by Bitcoin momentarily dropping to $92,500, caused by concerns over the potential tightening of monetary policy by the Federal Reserve in 2025.
Bitcoin has dropped back to the $95K support point due to stronger than anticipated US job data, according to QCP analysts. The JOLTS job openings jumped to 8.1 million, exceeding the predicted 7.74 million. This unexpected labor market strength caused a risk-averse mood, leading to a downturn in risky assets as long-term bond yields increased.
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2025-01-09 13:46