U.S.-based entities currently hold the highest percentage ever of worldwide Bitcoin reserves, as trust in this asset class grows. This figure now stands at approximately 65% more than that held by non-U.S. entities, as reported by CryptoQuant’s CEO Ki Young Ju.
This significant point is derived from examining the Bitcoin ownership of recognized U.S. entities such as miners, MicroStrategy (MSTR), ETFs, trading platforms, and government bodies, contrasted with their foreign counterparts.
Institutional Demand Pushes US Bitcoin Reserve Ratio to ATH
According to the infographic provided by the executive, the proportion of U.S. Bitcoins compared to non-U.S. Bitcoins has significantly risen over time. This ratio climbed from 1.24 in September 2024 to 1.66 by December 16 and remained at approximately 1.65 as of January 6, 2025. This trend reversed a period in 2023 when offshore holdings were more prevalent as Bitcoin was traded under $30,000.
U.S. entities’ #Bitcoin reserve share hit ATH, now 65% higher than non-U.S. entities.
— Ki Young Ju (@ki_young_ju) January 9, 2025
The rise in Bitcoin holdings within U.S. borders corresponds with significant events, such as Donald Trump’s re-election and his suggestion for a national strategic Bitcoin reserve, as well as the peak of Bitcoin’s value surpassing $108,000 at its highest point.
There’s been a significant rise in institutional interest, which is shown by the high inflows and trading activity seen in Bitcoin ETFs, as well as MicroStrategy’s continuous acquisition of Bitcoin.
Currently, the company now owns approximately 447,470 Bitcoins following its recent acquisition of 1,070 coins. Moreover, they have disclosed their intention to gather a massive $42 billion over a span of three years with the aim of expanding their Bitcoin holdings.
Multiple businesses have chosen to emulate MicroStrategy’s actions. Even amidst a slight market downturn, local businesses in the country continue to show their dedication towards Bitcoin. For example, this week, Thumzup Media Corporation – recognized for its proficiency in social media branding and marketing – acquired 9.783 Bitcoins at around $1 million.
In November 2024, the company made its debut in the Bitcoin market, not long after Trump’s election victory. Simultaneously, Solidion Technology, a company dealing with battery materials, announced plans to put some of its cash reserves into Bitcoin. Not far behind, Genius Group unveiled a project centered around Bitcoin and pledged $120 million towards the digital currency.
Global Governments and Corporations Ramp Up Interest
These advancements have ignited curiosity among non-US entities and governments regarding the creation of their own strategic Bitcoin reserves. Notably, the Japanese venture capital firm Metaplanet aims to amass 10,000 Bitcoins by 2025 as part of its long-term vision.
As an analyst, I’ve been reflecting on recent remarks made by Metaplanet CEO Simon Gerovich. He proposed an intriguing scenario: if Donald Trump were to establish a strategic Bitcoin reserve in the United States, it could trigger a global race to amass BTC reserves. Gerovich suggested that Japan and other Asian nations might mimic this move, viewing Bitcoin not just as a financial asset, but as a strategic national resource.
He emphasized the increasing attention towards Bitcoin from both corporations and governments, and suggested that this trend aligns with the ideas presented in “The Bitcoin Standard.” Furthermore, Gerovich pointed out that Trump’s reserve strategy might prompt developing nations to embrace Bitcoin as a means of currency stabilization.
Various governments globally are currently pondering over including Bitcoin as part of their reserve assets. For instance, the Governor of the Czech National Bank, Aleš Michl, has proposed purchasing Bitcoin for diversification purposes. This move could potentially place the Czech Republic among countries like Switzerland, Germany, and Hong Kong, which are actively investigating cryptocurrencies as potential reserve assets.
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2025-01-09 14:03