Ki Young Ju, CEO of CryptoQuant, revealed that U.S.-based entities now hold 65% more Bitcoin reserves than their non-U.S. counterparts, marking a new all-time high (ATH). This shift signals that the U.S. is solidifying its position as the global leader in Bitcoin reserves, raising crucial questions about the future dynamics of the cryptocurrency market.
Bitcoin Reserves: U.S. vs Non-U.S. Entities
Ju’s tweet highlights a significant rise in Bitcoin holdings among U.S. entities, which include miners, corporations, exchanges, and even government-backed organizations. Major U.S. companies like MicroStrategy have been consistently accumulating Bitcoin, strengthening their balance sheets with the digital asset.
The ratio of Bitcoin held by U.S. entities has surged from 1.24 in September 2024 to 1.65 by January 2025. This indicates a clear dominance of U.S. entities over non-U.S. counterparts in Bitcoin reserves, as the country’s involvement in the crypto space continues to grow.
Changing Market Dynamics
Historically, non-U.S. entities controlled a larger share of Bitcoin, particularly when the digital currency’s price remained under $30,000. However, a turning point occurred in 2023 when former U.S. President Donald Trump voiced his support for cryptocurrencies during his re-election campaign, sparking a rally that pushed Bitcoin’s price to a record $108,135.
This price surge fueled the growth of U.S.-based Bitcoin ETFs, such as those launched by BlackRock and Fidelity, which attracted billions in new investments and further shifted the balance of Bitcoin holdings towards the U.S.
What Does This Mean for Bitcoin’s Future?
The increasing dominance of U.S. entities in Bitcoin reserves is sparking interest among other countries, including Russia and Poland, which are exploring their own Bitcoin reserves. However, economists like Peter Schiff have raised concerns, warning of potential price crashes due to U.S. dominance.
Also Read: Cryptocurrency Market Faces Mixed Sentiment: Bitcoin Struggles at $93k, XRP Sees Gains
As the U.S. becomes a key player in Bitcoin, its regulatory stance and policies will play a pivotal role in shaping the future of Bitcoin and the broader cryptocurrency market. The question remains: will this dominance continue, or will other nations follow suit?
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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