US-based Bitcoin reserves have surpassed foreign holdings by 65%, marking a significant shift in the cryptocurrency landscape. According to a recent analysis by CryptoQuant, Bitcoin reserves held by U.S. firms now exceed those held by offshore entities. This trend is attributed to a combination of factors, including the approval of spot Bitcoin exchange-traded funds (ETFs) and President Donald Trump’s embrace of the digital asset.
Throughout most of 2023, offshore Bitcoin reserves outpaced those in the U.S. as the cryptocurrency struggled to maintain its value below $35,000 amidst market uncertainty. However, the tide began to turn in January of last year, with U.S.-based Bitcoin reserves experiencing a rapid increase. This growth was fueled by the approval of spot BTC ETFs by the Securities and Exchange Commission, which quickly attracted over $110 billion in investor assets, representing more than 5% of Bitcoin’s total market capitalization.
Companies like MicroStrategy also played a significant role in driving up U.S.-based Bitcoin reserves. Led by Bitcoin advocate Michael Saylor, MicroStrategy purchased over 250,000 BTC for $22.07 billion in 2024, with plans to acquire even more of the leading cryptocurrency. President Trump’s shift from a Bitcoin skeptic to a supporter further bolstered the asset’s appeal, leading to a new all-time high of $108,135 following his victory.
A joint survey conducted by Bitwise Asset Management and analytics firm VettaFi revealed a surge in client inquiries about cryptocurrency among wealth advisors in 2024. The study also noted an 11% increase in cryptocurrency allocations as investors warmed up to the emerging asset class. This growing interest in Bitcoin and other digital assets is indicative of a broader trend towards mainstream adoption and acceptance.
Overall, the dominance of U.S.-based Bitcoin reserves over foreign holdings highlights the country’s growing influence in the cryptocurrency market. With regulatory approvals, corporate investments, and shifting attitudes towards digital assets, the U.S. is poised to play a leading role in shaping the future of Bitcoin and blockchain technology.