US-based exchanges have reversed their Bitcoin volume dominance

On-chain data shows the US-based exchanges have seen a reversal in their Bitcoin volume dominance. Here's what this trend led to last time.

New on-chain data from CryptoQuant has shown that there has been a recent reversal in the US vs. Off-Shore Ratio, which measures the volume of Bitcoin trades on American platforms relative to foreign ones.

The 'US vs. Off-Shore Ratio' is a metric that compares the volume of Bitcoin trades on U.S.-based exchanges to those on off-shore platforms. A reading above 1 indicates that the American platforms are engaging in more volume, while a reading below 1 suggests that the foreign platforms are seeing a higher amount of trading activity.

Recently, this indicator has seen a reversal, according to CryptoQuant analyst Axel Adler Jr. In a post on X, the analyst pointed out that the ratio has been increasing since the start of 2023, and it broke above the 1 level in January.

This signaled a return to dominance from the U.S.-based exchanges, which had lost the edge in late 2022. The indicator continued the trend from last year and observed a further rise to an even higher peak in January.

However, since then, the indicator has seen a sharp reversal, though it is still noteworthy that even after the drop, the indicator’s value continues to be above the 1 mark. This suggests that American platforms are still the dominant ones in Bitcoin volume, albeit to a much smaller degree.

The analyst also highlighted on the graph a previous instance of the indicator seeing such a reversal. This last turnaround, which came when the asset was trading around $60,000, led into a rally that took the price to new highs.

Something that’s still missing for the indicator’s reversal at present to be confirmed is the trend in the 90-day and 365-day simple moving averages (SMAs). During the previous turnaround, the two lines observed a crossover.

Recently, these SMAs have been approaching each other closely, so it’s possible that another crossover may be coming soon. Going by the previous trend, the increase in activity on the American exchanges could once again prove to be bullish for Bitcoin. As of now, though, the crossover hasn’t been confirmed.

At the time of writing, Bitcoin is trading at a price of $84,000, having risen by over 10% in the last seven days.