CryptoQuant: US Entities Now Hold 65% More Bitcoin Than Offshore Counterparts, Reflecting Strong Institutional Demand

Bitcoin reserves held by US-based entities have surged to levels well above those held offshore, driven by heightened institutional demand and a tightening grasp by major US players. The latest on-chain data show that as of January 9, US-based holders boasted an all-time-high comparative advantage, with their reserves approximately 65% greater than those held by offshore entities. The ratio of US to offshore Bitcoin holdings climbed from about 1.24 in September 2024 to a peak near 1.66 in December, and has since hovered around 1.65. This pronounced tilt underscores a shift in the Bitcoin reserve landscape, highlighting how US institutions, exchanges, miners, and large corporate buyers are contributing to a dominant American footprint in the market.

Section 1 — The US-led shift in Bitcoin reserves: scope, drivers, and implications

The latest measurements illustrate a persistent and widening gap between Bitcoin reserves held by entities based in the United States and those held by offshore counterparts. The observed 65% edge signals more than simple rearrangements in hodling patterns; it points to a structural shift in how institutions allocate Bitcoin within the highest-regulation environment, backed by a robust domestic infrastructure. In practical terms, this means a growing concentration of liquidity, custody expertise, and regulatory clarity within the United States, which in turn influences how Bitcoin moves through markets, how risk is managed by large buyers, and how retail access is shaped via regulated products and platforms.

One key feature of this dynamic is the composition of US holders themselves. The metric used to gauge this divide compares holdings among known US entities—including prominent corporate buyers, spot Bitcoin exchange-traded funds (ETFs) listed in the domestic market, major exchanges, mining operations, and the US government—to holdings held by known offshore entities. While the precise mix of entities evolves over time, the overarching trend is clear: the United States has consolidated a larger share of the publicly traceable Bitcoin reserves than any other region. This consolidation is not occurring in isolation but is linked to the broader evolution of institutional finance around Bitcoin, including the creation and expansion of regulated vehicles and the increasing willingness of traditional institutions to treat Bitcoin as a balance-sheet and treasury asset.

Histories of the ratio reveal a narrative of acceleration. Beginning in September 2024, the US-to-offshore ratio stood at roughly 1.24, indicating a modest but accelerating lead for US holders. By December, that ratio had risen to about 1.66, illustrating a sharp acceleration in US dominance. In the most recent readings, the ratio has kept a level consistent with that peak, hovering near 1.65. This progression points to a durable shift rather than a temporary deviation, suggesting that the factors propelling US-based accumulation are not easily reversed in the near term.

A crucial implication of this trend lies in the way price dynamics interact with reserve composition. Historically, periods of rising institutional demand in the United States have coincided with stronger macro signaling for Bitcoin as a regulated, institutional-grade asset. The current data indicate that the US reserve advantage is not simply a consequence of offshore selling or lack of offshore buying but a direct outcome of sustained inflows from US-based institutions, strategic corporate purchases, and the development of regulated pathways for exposure. This combination supports a narrative in which Bitcoin’s role within US portfolios continues to mature, with reserve growth serving as a proxy for broader adoption and the potential for price resilience anchored in institutional commitment.

From a market architecture perspective, the US reserve surge aligns with several structural elements already in place or rapidly expanding. First, the domestic ecosystem includes large corporate treasuries, hedge funds, family offices, and other institutions that have intensified their Bitcoin exposure. Second, the development of domestic custody and settlement infrastructure reduces frictions associated with safe custody, compliance, and risk management, enabling larger positions to be held more securely. Third, the advent and continued expansion of US-listed regulated products—most notably spot BTC ETFs—have provided familiar, regulated on-ramps for both institutions and retail investors, reinforcing demand and contributing to the observed reserve patterns.

The reserve dynamics also reflect geographic and regulatory confidence. When investors locate their exposure in a jurisdiction with a consistent regulatory framework, clear governance standards, and robust market infrastructure, they tend to execute larger allocations with a willingness to hold longer time horizons. The reported US-dominant reserve picture mirrors that preference, pointing toward a strategic alignment of Bitcoin with traditional financial systems inside the United States. While offshore entities may respond to different risk tolerances, macro conditions, or regulatory signals, the current trend illustrates a clear preference among many large holders for the US market as the primary operating environment for Bitcoin reserves.

Another important thread in this story is the positive feedback loop between reserve growth and market structure. As US institutions accumulate more Bitcoin, liquidity and market depth in US venues improve, attracting more participants who seek regulated access and professional trading tools. This, in turn, supports more efficient price discovery and risk management, potentially reinforcing the attractiveness of Bitcoin as a store of value or portfolio diversifier within larger investment programs. The interplay between reserve holdings and market infrastructure thus contributes to a virtuous cycle that supports ongoing accumulation within the United States.

In sum, the observed 65% US reserve advantage, the rising US-to-offshore ratio, and the sustained elevation of US holdings relative to offshore equivalents collectively signal a durable shift in the Bitcoin reserve landscape. This shift is driven by a combination of institutional demand, corporate treasury activity, the growth of domestic ETFs and other regulated access points, and the maturation of US market infrastructure. The implications extend beyond mere custody figures; they influence liquidity distribution, market resilience, and the strategic considerations of both buyers and sellers who operate within or seek exposure to Bitcoin in the United States.

Section 2 — MicroStrategy and the robustness of institutional demand fueling reserves

Amid the broader rise in US-based accumulation, one name repeatedly surfaces as a touchstone for institutional appetite: MicroStrategy, the enterprise software company that has made Bitcoin a central pillar of its treasury strategy. The latest disclosed activity in late December 2024 showed a fresh purchase of 1,070 BTC, executed over two days—the window from December 30 to December 31, 2024. The average acquisition price for these coins was approximately $94,004 per Bitcoin, a substantial outlay that underscored the company’s ongoing commitment to Bitcoin as a strategic treasury asset rather than a passive investment.

With this latest acquisition, MicroStrategy’s total Bitcoin holdings rose to 447,470 BTC, a corpus valued at roughly $28 billion at current market levels. This amount represented about 2.1% of all Bitcoin that will ever exist, underscoring the scale of MicroStrategy’s influence on the broader market and the depth of the company’s conviction in Bitcoin’s long-term potential. The company’s disciplined approach has been consistent with its prior purchases, maintaining a structured framework for how it funds acquisitions. In this case, MicroStrategy drew on proceeds from a convertible note sale to finance the purchase, reinforcing the company’s strategy of leveraging opportunistic financing to bolster its Bitcoin exposure.

MicroStrategy’s approach illustrates several broader themes at play within the US institutional landscape. First, it demonstrates the willingness of large corporate treasuries to deploy capital aggressively into Bitcoin, signaling confidence in the asset’s long-term utility in diversified portfolios. Second, it reveals how corporate finance mechanisms—such as convertible notes—can provide flexible funding channels that support dynamic asset accumulation without immediate dilution to equity. Third, it contributes to the sense of a rising tide among US institutions, where one large enterprise’s actions can influence perceptions of risk, opportunity, and strategic alignment with Bitcoin within the corporate finance ecosystem.

Beyond MicroStrategy, the broader pattern of institutional demand is reinforced by the rollout of regulated access points that make Bitcoin exposure more palatable to traditional investors. The domestic market’s appetite for regulated vehicles—such as spot Bitcoin ETFs—has been a central driver of institutional participation, providing familiar governance, compliance, and reporting standards that align with established investment practices. The cumulative effect is a more disciplined, transparent, and scalable approach to Bitcoin ownership among large US institutions, which tends to support greater reserve accumulation over time.

In this context, MicroStrategy’s purchases are not isolated incidents but rather a visible signal of a more expansive trend. The company’s continued engagement with Bitcoin as a strategic reserve instrument resonates with many other institutions that seek to balance potential upside with structured risk management. While each investor must navigate unique internal priorities, the overarching pattern—of sizable, well-financed acquisitions conducted through regulated channels—contributes to the mounting reserve share held by US entities and reinforces the broader narrative of US-based institutional leadership in Bitcoin markets.

Section 3 — Regulated access and the rise of US-listed spot Bitcoin ETFs

A pivotal element driving the expansion of US-based Bitcoin reserves is the rapid development and uptake of regulated access through spot Bitcoin ETFs listed within the United States. These exchange-traded products, introduced in early 2024, have facilitated a more conventional and accessible path for both institutions and individual investors to gain regulated exposure to Bitcoin without directly managing digital asset custody or self-directed wallets. The result has been substantial inflows into the US market, helping to channel capital into Bitcoin with the confidence that comes from regulated products, transparent pricing, and standardized trading practices.

Estimates of inflows into US-listed spot Bitcoin ETFs since their inception reflect a robust and growing demand profile. The cumulative inflows reached into the tens of billions of dollars, underscoring the extent to which regulated access points have lowered barriers to entry for a broad spectrum of market participants. The ETF structure provides several advantages that appeal to professional and retail investors alike: regulated custody, standardized settlement processes, clear governance and reporting, and easier tax reporting and investment oversight. These features collectively reduce many of the perceived obstacles associated with direct Bitcoin ownership, thereby expanding the investor base and increasing the likelihood of sustained demand.

The impact on reserve composition is twofold. First, the ETFs act as an on-ramp that channels new money into the Bitcoin market, contributing to higher overall demand and, by extension, higher reserve accumulation among US entities. Second, the regulated framework tends to attract less price-sensitive capital, which can support longer-term holding patterns and reduce the frequency of rapid, liquidity-driven repositionings. In combination with other US-based institutional activities, ETFs help sustain demand momentum that supports the ongoing growth of US reserves relative to offshore holdings.

From an investor relations perspective, the ETFs provide a clearer signal about the symmetry between Bitcoin’s risk-reward profile and traditional investment vehicles. They allow participants to incorporate Bitcoin into diversified portfolios through familiar channels, aligning Bitcoin exposure with other asset classes in a regulated, transparent, and auditable manner. This alignment matters not only for current demand but also for the potential expansion of future products. As market participants become more comfortable with spot Bitcoin ETFs, it is reasonable to anticipate continued inflows, incremental product innovations, and greater integration of Bitcoin into mainstream investment strategies.

The net effect of regulated access points on reserve dynamics is substantial. They have helped bridge the gap between the crypto market and traditional finance by providing a compliant, accessible, and scalable pathway for investment. That bridge, in turn, supports the ongoing shift toward greater reserve concentration in the United States as more investors, institutions, and corporate treasuries deploy capital through regulated channels. The combined effect promotes a more durable and sustainable trajectory for US-based Bitcoin reserves, reinforcing the broader narrative of US leadership in institutional adoption and market infrastructure.

Section 4 — Bitcoin price action, on-chain metrics, and market psychology

The surge in US-held Bitcoin reserves has occurred alongside a pronounced move higher in Bitcoin’s price, followed by a healthy correction that many analysts describe as a constructive phase for the market. After lifting above the $100,000 level, Bitcoin has retraced to around $93,000, a retreat that has been interpreted by market observers as a normal consolidation after a strong rally. The retracement coincides with a broader environment of macro uncertainty and shifting expectations around monetary policy, which has influenced risk appetite across asset classes.

On-chain metrics provide a complementary lens through which to view the current cycle. Unrealized profit margins—an indicator of how much profit holders have on their positions that have not yet been realized—have tightened as prices retraced. This development is often seen as a natural outcome of a bull run, where profit-taking and risk management lead to a more balanced distribution of gains within the market. Some analysts highlight that the decline in on-chain unrealized profits is not a negative signal; rather, it can reflect a healthier market structure after a rapid ascent, reducing the likelihood of unsustainable speculation and creating space for more sustainable appreciation in the medium term.

Over the past 24 hours, the market experienced notable liquidity movements, with hundreds of millions of dollars in liquidations across the crypto space. A portion of these liquidations accrued from long positions, triggered by a dip in Bitcoin’s price to a range around $92,500. The reasons cited for the move include concerns about the Federal Reserve’s monetary policy trajectory for 2025, as investors anticipated potential tightening while also weighing the possibility of continued inflationary pressures and labor market dynamics.

Macro data played a pivotal role in shaping traders’ sentiment. One notable data point involved a stronger-than-expected release related to job market indicators, which surprised markets and reinforced a risk-off mood that affected risk assets, including cryptocurrencies. Market participants pointed to a surge in job openings as a factor contributing to higher long-term yields and a reallocation of funds toward safer assets. The resulting shifts in risk appetite added a layer of complexity to price action, prompting traders to reassess risk management strategies and to consider hedging or rebalancing portfolios accordingly.

From a technical standpoint, the price pressures observed at key support levels were closely watched by market participants. Analysts observed that Bitcoin had retraced to a historically significant support area around the mid- to upper-90,000s range, with the near-term price structure influenced by a combination of macro newsflow, on-chain signals, and the evolving dynamics of regulated market access in the United States. The interplay between on-chain fundamentals and macro catalysts continues to shape expectations for a potentially renewed phase of upside, albeit with a heightened awareness of the need for disciplined risk management and prudent position sizing.

In terms of market psychology, the narrative around Bitcoin’s resilience and its trajectory ahead remains influenced by the broader adoption picture and the pace at which institutions continue to build exposure. The sense of momentum that accompanied the initial run past the $100,000 mark has evolved into a more nuanced conversation about sustainable growth versus speculative fervor. As market participants assimilate this information, the price path becomes increasingly dependent on macro cues, regulatory clarity, and the continued emergence of regulated investment vehicles that offer safer and more accessible avenues for exposure.

Section 5 — Implications for the market, adoption trends, and the path forward

The convergence of rising US-based reserves, robust institutional demand, and the launch of regulated access points into Bitcoin markets carries meaningful implications for the broader crypto ecosystem and the traditional financial system. The US reserve dominance signals a maturation of Bitcoin as an asset class that can be integrated into mainstream investment strategies, with clear governance, custody standards, and reporting protocols that align with institutional expectations. For exchanges, custodians, and ETF issuers, this trend reinforces the importance of reliability, operational resilience, and scalable services that can support large, long-horizon positions maintained by sophisticated investors.

From an investment perspective, the ongoing accumulation by US entities—paired with the acceptance of regulated vehicles—helps to anchor Bitcoin’s role as a strategic reserve asset in some portfolios. Institutions that previously approached Bitcoin with caution are now more likely to engage through regulated channels, contributing to a broader base of holders and a more diverse set of market participants. This diversification of ownership can enhance liquidity and market depth, reducing the likelihood of outsized price spikes driven by limited supply or abrupt shifts in position sizes.

The corporate-side narrative continues to unfold as major treasury strategies incorporate Bitcoin in a structured, long-term fashion. The MicroStrategy example underscores a broader theme: when a large corporate balance sheet becomes anchored in Bitcoin, it signals confidence that aligns with other institutional participants. This alignment fosters a ecosystem where developers, service providers, and financial intermediaries tailor products, custody solutions, and advisory services to accommodate sophisticated investors seeking regulated exposure and robust risk controls.

Regulated on-ramps also influence education and awareness. As more investors gain familiarity with spot ETFs and other American-registered vehicles, the perceived complexity of Bitcoin ownership declines. This educational effect can, over time, broaden participation beyond early adopters and specialized institutions to a wider audience of investors seeking exposure to a digital asset with capped supply and unique risk-return dynamics. The combination of familiarity, regulatory guardrails, and a deep pool of capital can create a favorable environment for continued adoption and resilience in the face of evolving macro conditions.

However, the market remains sensitive to macro and policy signals. The path forward will hinge on several intertwined factors: the pace and nature of monetary tightening or easing by the central bank, the strength of labor markets and consumer demand, global regulatory developments, and the continued evolution of the crypto ecosystem’s infrastructure. Investors will watch for liquidity conditions, the health of exchanges and custodians, and the ability of regulated products to deliver consistent performance and reliable risk management. The balance between yield opportunities and risk controls will continue to shape the trajectory of Bitcoin reserves, the behavior of large holders, and the demand profile across the investor spectrum.

Looking ahead, several scenarios remain plausible. A continued expansion of US-based institutional participation could reinforce reserve growth and push the ratio of US-to-offshore holdings higher, provided macro and regulatory conditions remain supportive. Alternatively, a re-pricing of risk in response to unexpected economic signals could lead to retracements or shifts in allocation toward hedging strategies and liquidity preservation. In all cases, the underlying trend toward greater institutional integration and regulated access is likely to persist, reinforcing Bitcoin’s place in the evolving landscape of digital assets and traditional finance.

Conclusion

The latest data reflect a clear and enduring shift in the Bitcoin reserve landscape, with US-based entities now holding a dominant share that outpaces offshore holdings by a wide margin. A 65% reserves gap, a rising US-to-offshore ratio, and sustained US leadership in institutional activity highlight how the United States has become a central hub for Bitcoin accumulation among large buyers, corporate treasuries, and financial intermediaries. The expansion of regulated access through spot Bitcoin ETFs, which began in 2024, reinforces this trend by providing familiar, compliant channels for investment and by channeling substantial capital into the Bitcoin market.

MicroStrategy’s continued buying activity underscores the depth of institutional conviction in Bitcoin as a strategic asset rather than a mere speculative asset class. Its recent purchase, financed through convertible note proceeds, illustrates how corporations are leveraging financing tools to expand exposure and stabilize holdings over time. The broader market framework—including ETF inflows, on-chain metrics, and macro developments—paints a picture of a growing, regulated, and institutionally integrated market for Bitcoin that is likely to influence reserve dynamics, liquidity, and price discovery in the years ahead.

As Bitcoin navigates a period of consolidation following an ascent beyond $100,000, the alignment between reserve growth, regulated access, and institutional commitment points to a durable trend. The market’s resilience and its capacity to attract more regulated capital will be essential in shaping how Bitcoin evolves as an asset class within sophisticated investment portfolios. Investors and market participants should monitor ongoing developments in policy, macro conditions, and the ongoing maturation of the US Bitcoin ecosystem, which together will determine the trajectory of reserves, price action, and the broader adoption story for Bitcoin in the global financial system.