On-chain data shows that US-based platforms have recently been expanding their bitcoin holdings. Here's what this could mean for the price of btc.
The ratio of bitcoin reserves between the US and the rest has increased recently
As CryptoQuant founder and CEO Ki Young Ju explains in a newx.com/ki_young_ju/status/1839148508127047990″ target=”_blank” rel=”noopener nofollow”> mail On x, btc appears to have recently moved from other countries to US exchanges.
The on-chain metric of interest here is the “US-to-rest reserves ratio,” which tracks the ratio between the total amount of bitcoin held by US-based central entities, such as exchanges and funds, and that platforms in the rest of the world.
When the value of this metric increases, it means that the cryptocurrency is moving to US-based platforms from those in the rest of the world. On the other hand, the fact that it has decreased suggests that the dominance of global platforms is increasing.
Now, here is a chart showing the trend of the relationship between bitcoin US and the remaining reserve over the last decade:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/09/US-Platforms-Regain-Bitcoin-Dominance-–-Is-This-Bullish.jpeg" alt="bitcoin Reserve Ratio US and Rest” width=”2160″ height=”1222″/>
The value of the metric appears to have been riding an uptrend in recent months | Source: x.com/ki_young_ju/status/1839148508127047990/photo/1" target="_blank" rel="noopener nofollow">@ki_young_ju on x
As shown in the chart above, the ratio of bitcoin US to the remaining reserve had seen a sharp decline during the 2022 bear market and had reached a low in 2023. This would suggest that a massive shift had occurred in the btc offer, with tokens. moving towards the wallets attached to the sea platforms.
However, in this year 2024, the indicator seems to have finally experienced a change of course, as its value has been rising, meaning that American platforms are regaining some of the lost dominance.
The main reason behind this trend is simple: spot exchange-traded funds (ETFs). Spot ETFs are financial instruments that provide exposure to bitcoin price movements through a medium familiar to traditional investors.
These funds finally gained approval from the U.S. Securities and Exchange Commission (SEC) earlier this year and have since gained some popularity.
The US-to-rest reserve ratio naturally also includes these new funds in its calculation, and since they didn't exist before, it makes sense that their value would see a rebound after their arrival this year.
Now, what could this bullish trend mean for bitcoin, if anything? From the chart, you can see that the last two times btc saw a significant uptrend on the indicator coincided with the last two bull runs.
The rally to the all-time price high (ATH) at the beginning of the year also saw a rapid rise in the indicator, although its scale was much smaller than the growth seen in the run-up to the 2017 and 2021 bull runs.
Given past precedent, it is possible that bitcoin will also benefit this time from this shift in supply to US exchanges.
btc Price
After seeing a continuation of its recent bullish momentum over the past day, bitcoin finally returned above the $65,000 level.
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Looks like the price of the coin has been on the rise for a while now | Source: BTCUSDT on TradingView
Dall-E Featured Image, CryptoQuant.com, TradingView.com Chart
