Bitcoin reserves held by US-based entities significantly exceed those held offshore, according to data from CryptoQuant.
US entities’ Bitcoin (BTC) reserve share reached an all-time high as of Jan. 9, with reserves 65% greater than those held by non-US entities, CryptoQuant data revealed.
The ratio of US to offshore Bitcoin holdings climbed from 1.24 in September 2024 to a peak of 1.66 in December and now stands at 1.65.
Chart showcasing US entities now holding 65% more Bitcoin compared to offshore players. Source: CryptoQuant
CryptoQuant CEO Ki Young Ju explained that the metric compares the Bitcoin holdings of known US entities — including companies like MicroStrategy, spot Bitcoin exchange-traded funds (ETFs), exchanges, miners and the US government — to those of known offshore entities.
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Institutional demand fuels Bitcoin rally
The surge in US-held Bitcoin reserves coincides with Bitcoin’s price increase.
In September 2024, when Bitcoin was trading at $60,000, offshore entities held the majority of reserves. By January 2025, Bitcoin had crossed the $100,000 mark, peaking at $108,135, and US entities’ reserve dominance hit record levels.
The dominance has been driven by heightened institutional interest.
MicroStrategy, the largest corporate Bitcoin holder, revealed a fresh purchase of 1,070 BTC from Dec. 30 to Dec. 31, 2024, at an average price of $94,004 per Bitcoin. The $101 million purchase brought MicroStrategy’s total holdings to 447,470 BTC, worth about $28 billion and accounting for 2.1% of all Bitcoin that will ever exist.
Like its previous purchases, MicroStrategy used proceeds from a convertible note sale to fund the acquisition. The company’s aggressive Bitcoin strategy underscores the growing appetite for BTC among US institutions.
Additionally, US-listed spot Bitcoin ETFs, launched in January 2024, have recorded inflows of $106.8 billion to date, according to data from Sosovalue. ETFs provide institutional and retail investors with regulated and simplified access to Bitcoin exposure.
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Market corrections
Bitcoin’s unrealized profit margins have shrunk amid the ongoing price correction.
After soaring past $100,000, Bitcoin has retraced to $93,000. Analysts view this correction as healthy after the recent rally.
“Trader’s onchain unrealized profit margins have declined significantly amid the ongoing Bitcoin price correction. This is healthy after a rally that got us above $100k,” wrote Julio Moreno, head of research at CryptoQuant.
Over the past 24 hours, $521 million has been liquidated from the crypto market, with $345 million coming from long positions, according to CoinGlass. The liquidations were triggered by Bitcoin briefly dipping to $92,500 due to fears over the Federal Reserve’s tightening monetary policy for 2025.
“Bitcoin has retraced to the $95K support level following hotter-than-expected US job data,” QCP analysts shared with Cointelegraph. “JOLTS job openings surged to 8.1 million, surpassing the 7.74 million forecast. The unexpected strength in the labor market fueled risk-off sentiment, triggering a sell-off in risky assets as long-term bond yields spiked.”
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