US Buying Activity Pushes Bitcoin Prices Higher

A new report from CryptoQuant shows that investors in the United States primarily drive the recent surge in Bitcoin

A new report by blockchain analytics platform, CryptoQuant, has shown that investors in the United States are largely driving the recent surge in Bitcoin (BTC) price.

The analysis from CryptoQuant, looking at the US to the Rest Reserve Ratio, breaks down how American buying behavior has influenced the market. Notably, this highlights key moments when rising institutional holdings in the US coincided with significant upward jumps in the Bitcoin price chart.

Chart of the US to the Rest Reserve Ratio via CryptoQuant

“Last year, when U.S. entities began increasing their Bitcoin holdings, the price of Bitcoin surged significantly.”

— One of the most notable events came when the US Securities and Exchange Commission (SEC) approved Bitcoin spot ETFs earlier this year. This landmark decision allowed US institutions to easily hold Bitcoin in a regulated manner. After the approval, Bitcoin price surged past $73,000.

— By January 2025, Bitcoin had climbed to $94,566.59, a recovery from around $42,258 at the end of 2023. According to CryptoQuant, these periods of price gains also saw American entities adding large amounts of Bitcoin to their reserves.

— It is worth noting that the report mentions that during these times, fewer Bitcoin units were available for trading on public exchanges. This may have contributed to the bullish momentum.

— Meanwhile, CoinMarketCap data shows that the largest digital asset, Bitcoin, is trading at $110,854.26 at the time of writing.

One of the firms driving Bitcoin adoption in the US is Strategy, which has now acquired 7,390 Bitcoin for $764 million, according to Coinspeaker.

With this latest purchase, Strategy’s total Bitcoin holdings have risen to 576,230 BTC amid growing Bitcoin yield.

Earlier this year, SEC Chair Gary Gensler’s testimony before the House Financial Services Committee sparked discussion about the potential approval of a spot Bitcoin ETF in the US.

During his testimony, Gensler highlighted the importance of considering the legal framework for cryptocurrencies in the future.

Moreover, Gensler noted that the SEC had already approved several Bitcoin futures ETFs, highlighting the progress made in the regulatory landscape.

Following this testimony, there was widespread anticipation for the SEC’s decision on applying for a spot Bitcoin ETF.

Finally, in early 2024, the SEC approved the application for a spot Bitcoin ETF, a move that had a significant impact on the crypto market.

After several years of attempts by major institutions, the agency approved an application from Bitcoins Trust to launch an ETF that will track the price of Bitcoin futures.

This decision came after the SEC rejected applications from Winklevoss twins’ firm, Trust, and later BlockChain Investment Group to launch a spot Bitcoin ETF in 2022.

However, in January 2024, the SEC approved applications from Bitcoins Trust to launch an ETF that will track the price of Bitcoin futures.output: Key Notes

A new report from blockchain analytics platform, CryptoQuant, has shown that investors in the United States are largely driving the recent surge in Bitcoin (BTC) price.

The analysis from CryptoQuant, looking at the US to the Rest Reserve Ratio, breaks down how American buying behavior has influenced the market. Notably, this highlights key moments when rising institutional holdings in the US coincided with significant upward jumps in the Bitcoin price chart.

Chart of the US to the Rest Reserve Ratio via CryptoQuant

“Last year, when U.S. entities began increasing their Bitcoin holdings, the price of Bitcoin surged significantly.” — One of the most notable events came when the US Securities and Exchange Commission (SEC) approved Bitcoin spot ETFs earlier this year. This landmark decision allowed US institutions to easily hold Bitcoin in a regulated manner. After the approval, Bitcoin price surged past $73,000.

— By January 2025, Bitcoin had climbed to $94,566.59, a recovery from around $42,258 at the end of 2023. According to CryptoQuant, these periods of price gains also saw American entities adding large amounts of Bitcoin to their reserves.

— It is worth noting that the report mentions that during these times, fewer Bitcoin units were available for trading on public exchanges. This may have contributed to the bullish momentum.

— Meanwhile, CoinMarketCap data shows that the largest digital asset, Bitcoin, is trading at $110,854.26 at the time of writing.

One of the firms driving Bitcoin adoption in the US is Strategy, which has now acquired 7,390 Bitcoin for $764 million, according to Coinspeaker.

With this latest purchase, Strategy’s total Bitcoin holdings have risen to 576,230 BTC amid growing Bitcoin yield.

Earlier this year