Bitcoin US To The Rest Reserve Ratio Has Seen A Reversal Recently
In a CryptoQuant Quicktake , an analyst discussed the recent trend in the BTC US to The Rest Reserve Ratio. This indicator tells us, as its name suggests, the ratio between the total Bitcoin reserves of the US-based centralized platforms and that of the global ones. Platforms here refer to not just the exchanges, but also other entities like banks and funds.
When the value of this metric is rising, it means the asset is currently moving from offshore platforms to American ones. Such a trend can be a sign of demand from the US-based investors. On the other hand, the indicator going down suggests the foreign platforms have higher demand for BTC right now as the American exchanges are losing dominance to them. Now, here is a chart that shows the trend in the 100-day Exponential Moving Average (EMA) of the Bitcoin US to The Reserve Ratio over the past year and a half:It would appear that the previous turnaround in the metric had occurred in the last quarter of 2023 and had accompanied a BTC rally that would eventually take the asset to a new all-time high (ATH). The sharpest part of this increase in the indicator had come in the first quarter of 2024. The reason behind this acceleration had been the introduction of the spot exchange-traded funds (ETFs) in the US, which had quickly gained popularity among the investors.
From the graph, it’s also visible, though, that a while after the price had reached the ATH, the metric had topped out and witnessed a reversal in direction. Thus, the spot ETFs couldn’t keep up the same level of interest. The analyst notes that BTC’s sustained consolidation this year can be traced back to this decrease in the reserve of the US-based platforms. Since the indicator has once again shown a turnaround recently, it’s possible that Bitcoin could see the return of bullish momentum, if the previous pattern is to go by.