According to CryptoQuant data, the share of Bitcoin reserves held by U.S. entities is now 65% higher than that of non-U.S. entities. CryptoQuant CEO Ki Young Ju stated on 𝕏 that this ratio is derived by comparing the known Bitcoin reserves held by U.S. entities (including MicroStrategy, ETFs, exchanges, miners, and the government) with the known holdings of offshore entities.
U.S. entities' #Bitcoin reserve share hit ATH, now 65% higher than non-U.S. entities. pic.twitter.com/SSgotY6RL8
— Ki Young Ju (@ki_young_ju) January 9, 2025
Data shows that for most of 2023, when Bitcoin prices were below $30,000, the Bitcoin reserves of offshore entities were higher than those of U.S. domestic entities. However, in the past three months, pro-crypto Trump won the presidential election, promising to establish a national strategic Bitcoin reserve. This move brought positive sentiment to the market, pushing Bitcoin prices above $100,000 and reaching an all-time high of $108,135. The ratio also soared from 1.24 in September 2024 to 1.66 on December 16. As of January 6, 2025, the ratio is 1.65.
On the other hand, with Trump's re-election, the trading volume and capital inflow of Bitcoin spot ETFs have significantly increased. According to data from SoSoValue, net inflows have reached billions of dollars in the past week, pushing the total net assets held by ETFs above $110 billion, accounting for 5.74% of Bitcoin's market value.
As the world's largest holder of Bitcoin, MicroStrategy continues to increase its Bitcoin reserves, with its most recent purchase of 1,070 Bitcoins, bringing its total holdings to 447,470 Bitcoins.
Such massive Bitcoin investments, coupled with a potential strategic reserve plan that may be implemented by the U.S. government in the future, have prompted several non-U.S. authorities to consider establishing their own Bitcoin reserves. Currently, discussions on this issue are underway in places such as Russia, Poland, and Vancouver, Canada.
However, Steve Hanke, a professor of applied economics at Johns Hopkins University, recently stated that he is "completely opposed" to the idea of establishing a U.S. national strategic Bitcoin reserve. Steve Hanke believes that the funds reserved have not been invested in physical capital used for production. He wrote in a post on 𝕏 this week:
"Using savings for Bitcoin does not build factories, create jobs, or drive innovation."
He also stated in an accompanying video:
"If we cannot increase productivity, we will face real problems, as productivity is the fundamental cornerstone of improving living standards and economic prosperity."
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