That’s according to Ki Young Ju, CEO of CryptoQuant. This record-breaking dominance reflects the fast-growing institutional and retail adoption of Bitcoin across the U.S.

Source: CryptoQuant

According to data shared by the executive, the ratio of U.S. to non-U.S. Bitcoin reserves climbed from 1.24 in September 2024 to 1.66 by December 16 and remained steady at 1.65 as of January 6, 2025. That increase comes after a period in 2023 when offshore holdings were in the lead while Bitcoin traded below $30,000.

The surge in U.S.-based Bitcoin reserves mirrors pivotal events, including Donald Trump’s re-election in November 2024 and his announcement of plans to establish a national Strategic Bitcoin Reserve. The policy push coincided with Bitcoin reaching an all-time high of $108,135, bolstered by a wave of institutional interest and strategic investments.

MicroStrategy Doubles Down on Bitcoin

MicroStrategy, a key player in the Bitcoin landscape, continued its aggressive strategy with a fresh purchase of 1,070 BTC between December 30 and 31, 2024. Acquired at an average price of around $94,000 per Bitcoin, that $101 million investment brought the company’s total holdings to an eye-popping 447,470 BTC. With a value exceeding $28 billion, MicroStrategy’s reserves already represent 2.1% of all Bitcoin that will ever exist.

Source: BitcoinTreasures

Other firms are following suit. Thumzup Media Corporation, a social media marketing giant, recently acquired 9.783 BTC for $1 million, marking its entry into the Bitcoin market just after Trump’s election win. Solidion Technology, a leader in battery materials, announced plans to allocate part of its cash reserves to Bitcoin, while Genius Group committed $120 million to a Bitcoin-focused initiative.

In tandem with institutional investments, spot Bitcoin ETFs have attracted remarkable inflows. Since their U.S. launch in January 2024, ETFs have drawn $106.82 billion, offering both institutional and retail investors regulated access to the cryptocurrency. That development highlights the growing appetite for Bitcoin exposure across financial markets.

Source: SoSoValue

Price Volatility Shakes Market Sentiment

Currently trading at $93,124, Bitcoin’s price has been on a rollercoaster, peaking at $108,268 on December 17, 2024, before retracing to $93,000 in January 2025, according to Brave New Coin’s Bitcoin Liquid Index.

Source: Brave New Coin’s Bitcoin Liquid Index

Bitcoin’s Long-Term Prospects Strong

“Trader’s onchain unrealized profit margins have declined significantly amid the ongoing Bitcoin price correction. This is healthy after a rally that got us above $100k,” wrote Julio Moreno, CryptoQuant’s head of research.

Despite the dip, Bitcoin’s long-term support level remains strong. QCP analysts noted that Bitcoin’s retracement to $95,000 followed unexpectedly high U.S. job data, which sparked risk-off sentiment. Job openings surged to 8.1 million, surpassing forecasts of 7.74 million, triggering a sell-off in risky assets and sending long-term bond yields higher.

Market volatility has led to substantial liquidations, with $348 million wiped out across the crypto market in the past 24 hours, according to CoinGlass. Of that, $200 million came from long positions as Bitcoin briefly dipped to $92,000 amid fears over Federal Reserve tightening policies in 2025.

Source: CoinGlass

However, with Trump’s inauguration now just days away, we expect a golden year for Bitcoin in 2025. Don’t be scared by short-term volatility, investors with a long-term time horizon are well-positioned to generate strong returns from Bitcoin in 2025.