Exploring the Shift in Bitcoin Dominance Towards US Exchanges
An intriguing trend regarding Bitcoin indicators has emerged, according to a recent post by Ki Young Ju, the founder and CEO of CryptoQuant, on X. The focus is on the ratio between the BTC reserve of US-based platforms and offshore entities, including exchanges and spot exchange-traded funds (ETFs), which started operating in the US this year.
- The increased ratio signals a rise in reserves on US platforms compared to offshore ones, indicating a potential shift in interest.
- In contrast, a decreasing trend suggests a transfer of cryptocurrency from US exchanges to foreign platforms.
Looking at a historical chart of this Bitcoin indicator over the past decade reveals significant fluctuations, especially during the 2022 bear market and subsequent recovery. Notably, the ratio has seen a sharp upward trend this year, indicating reduced dominance of offshore platforms, possibly fueled by the popularity of US spot ETFs.
Understanding Trends from Past Bull Runs
Historically, similar patterns in the dominance of US-based exchanges were observed before the 2021 bull run and the 2017 rally. In both instances, a shift towards American platforms preceded significant price increases for Bitcoin.
- The cryptocurrency tends to experience bullish periods when interest in American platforms outweighs that in global exchanges.
Given the recurrence of this pattern recently, speculation arises about the potential for another major bull run. However, whether history will repeat itself remains uncertain.
Market Insights and Liquidations
Concurrently, the derivatives sector witnessed a substantial number of long investors facing liquidations totaling over $173 million within 24 hours. The majority of these liquidated positions, exceeding $148 million, were long positions.
Bitcoin Price Movement
After a brief dip below $66,000, Bitcoin has slightly recovered to reach $66,600 in its latest trading session.
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