Bitcoin Exchange Reserve Ratio Drops: US Platforms Losing Supply

• The Bitcoin exchange reserve ratio between US and offshore platforms has been declining recently.
• This metric measures the ratio of coins sitting on US-based exchanges versus foreign ones.
• A chart shows that the value of this metric has been decreasing since 2022, suggesting a lower supply on American platforms compared to foreign ones.

What is the Bitcoin Exchange Reserve Ratio?

The Bitcoin exchange reserve ratio is an indicator that measures the total amount of Bitcoin held in wallets by centralized exchanges or groups of such platforms. It tracks the ratio between the reserves of two sets of exchanges – US-based ones and those located offshore.

Recent Decline in Exchange Reserve Ratio

Recently, data from CryptoQuant showed that the BTC reserve of US-based exchanges has been going down. This decline can be seen in a chart which shows a decrease in the exchange reserve ratio since 2022. This implies that there is a lower supply on American platforms compared to foreign ones.

Why Has The Exchange Reserve Ratio Been Declining?

The decline could have been caused by major crashes where some major platforms have gone bankrupt and FUD spread around the market, leading to investors withdrawing their coins from centralized exchanges. Though these crashes may have accelerated drawdowns temporarily, they are not likely to be responsible for the overall trend towards lower supplies on American platforms relative to those located elsewhere.

Implications Of The Exchange Reserve Ratio Decrease

The decreasing exchange reserve ratio suggests that more capital is flowing out of US-based exchanges than into them compared to their counterparts located abroad. This indicates that investors may be increasingly turning away from domestic crypto trading markets and towards global alternatives instead, potentially due to higher liquidity levels or other advantages offered by foreign venues.


Data from CryptoQuant shows that the Bitcoin exchange reserve ratio between US-based and offshore platforms has been falling recently, indicating a trend towards more capital flowing out of domestic trading markets than into them relative to their global counterparts. This could suggest investors are increasingly turning away from local crypto trading venues in favor of better opportunities abroad.