US-Based Crypto Exchanges Reclaim Bitcoin Trading Volume Supremacy: Historical Trends and Implications

Recent market data indicates that cryptocurrency exchanges operating within the United States are experiencing a resurgence in Bitcoin trading volume dominance. This shift marks a significant development in the digital asset landscape, as US platforms had previously ceded considerable market share to international competitors. Historical analysis reveals that similar periods of US exchange dominance have often coincided with major regulatory developments, institutional adoption waves, and shifts in global liquidity patterns. The last occurrence of this trend preceded both the 2021 bull market and subsequent regulatory crackdowns, suggesting potential market-moving implications. Market participants are closely monitoring whether this volume resurgence signals changing institutional participation patterns, evolving compliance standards, or new capital flow dynamics in the cryptocurrency ecosystem.

Bitcoin US Vs Off-Shore Ratio Has Been Rising Recently

As pointed out by CryptoQuant author Axel Adler Jr in a new post on X, the US vs. Off-Shore Ratio is currently showing a reversal. The “US vs. Off-Shore Ratio” keeps track of the ratio between the Bitcoin volume involved in trades on the American platforms and that on the foreign ones.

When the value of this metric is greater than 1, it means the US-based exchanges are dominating in terms of volume compared to the rest of the world. On the other hand, it being under the mark suggests off-shore platforms are witnessing a higher amount of trading activity.

Now, here is the chart shared by the analyst that shows the trend in the Bitcoin US vs Off-Shore Ratio over the last few years:

As is visible in the above graph, the US vs. Off-Shore Ratio witnessed a sharp increase in 2023 and broke above the 1 level, signaling the return of dominance from the US-based exchanges. It has since remained in this region, with a second leg up occurring in the second half of last year.

While the indicator continued the trend from last year and observed a rise to an even higher peak in January, it has since noted a sharp reversal. Though, despite the drop, its value continues to be above the 1 mark, which suggests American platforms are still the dominant ones in Bitcoin volume, albeit to a much smaller degree.

From the chart, it’s apparent that very recently, the Bitcoin US vs. Off-Shore Ratio has shown early signs of another turnaround, as its value has marked a small improvement.

In the graph, the analyst has highlighted the previous instance of the indicator witnessing 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, 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.

BTC Price

At the time of writing, Bitcoin is floating around $84,000, up more than 10% in the last seven days.