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Data highlights how US institutions and funds are spearheading the surge in Bitcoin ownership, pushing reserves to unprecedented heights that reflect a clear increase in institutional interest. In a bold assertion, economist Timothy Peterson anticipates a staggering $1.5 million price for a single Bitcoin by 2035, a forecast inspired by Bitcoin’s growing network value.

The demand for Bitcoin keeps rising, with reserves held by US-based entities significantly outstripping those located offshore. Recent findings from CryptoQuant show that as of January 9, the reserve share for US entities has reached an all-time high, with reserves now 65% greater than those of offshore holders. This shift not only signals a change in Bitcoin ownership distribution but also emphasizes the enthusiastic adoption of Bitcoin among institutions amid increasing regulatory clarity in the US market.

The upward trend in US holdings is clear when examining the ratio of Bitcoin reserves between US entities and their international counterparts. This ratio surged from 1.24 in September 2024 to a peak of 1.66 in December, before stabilizing at 1.65 in January 2025. Essentially, for every Bitcoin held abroad, US entities now possess 65% more.

This measure encapsulates the holdings of major US players, such as corporations like MicroStrategy, spot Bitcoin exchange-traded funds (ETFs), exchanges, miners, and the US government. Such data emphasizes the significant role that institutional and government action plays in the Bitcoin marketplace.

The increase in US Bitcoin reserves coincides with a notable rise in Bitcoin prices. When Bitcoin traded around $60,000 in September 2024, offshore entities led in reserves. However, as Bitcoin’s value climbed beyond $100,000, reaching a peak of $108,135, US dominance in Bitcoin reserves hit astonishing new heights.

MicroStrategy has been at the forefront of Bitcoin’s corporate adoption, showing aggressive investment strategies. Recently, they announced the purchase of 1,070 BTC between December 30 and 31, 2024, with an average price of $94,004 each. This monumental acquisition brought their total holdings to 447,470 BTC, valued at approximately $28 billion, which amounts to 2.1% of Bitcoin’s total supply. Such movements reflect a growing inclination among US institutions to treat Bitcoin as a core reserve asset.

The launch of US-listed spot Bitcoin ETFs in January 2024 has propelled the accumulation of Bitcoin reserves. According to Sosovalue, these ETFs have garnered $106.8 billion in inflows, providing both institutional and retail investors with a regulated method to gain exposure to Bitcoin. The combination of these ETFs and enhanced regulatory clarity in the US market has created a conducive environment for increasing institutional adoption, further solidifying the dominance of US entities in Bitcoin ownership.

Despite this momentum, Bitcoin has recently encountered a price correction following its rise above the $100,000 mark. The price adjusted to approximately $93,000, temporarily dipping to $92,500 due to concerns over the Federal Reserve’s monetary policies for 2025. As noted by CoinGlass, the crypto market experienced $521 million in liquidations amid this correction, driven by factors including stronger-than-anticipated job figures in the US labor market.

CryptoQuant’s Julio Moreno characterized the current price correction as healthy, indicating that it’s a natural outcome after an impressive rally. Market analysts are eyeing $95,000 as a critical support level, hinting at a potential rebound for Bitcoin in the near future.

With institutional interest showing resilience and US entities aggressively amassing Bitcoin assets, the long-term outlook remains promising. The current prevalence of US institutions in Bitcoin reserves signals a pivotal evolution for this cryptocurrency, underscoring the essential role that institutional support and regulatory clarity will play in its future trajectory.

As for Peterson’s ambitious projection of $1.5 million per Bitcoin by 2035, his insights are not without merit. His model, which leverages Metcalfe’s Law, posits that Bitcoin’s value will correlate with its user base expansion. Peterson confidently stated, “The year is 2035. Bitcoin is at—and you can hold me to this—$1.5 million,” suggesting that Bitcoin’s continual dominance is inevitable as its network effect amplifies.

Peterson’s predictions are supported by past successes, including his accurate forecasts around Bitcoin’s floor price and market conditions. While the market currently exhibits mixed sentiments, with Bitcoin priced at approximately $93,535, analysts remain cautious yet optimistic about future trends.

With significant events like the upcoming inauguration of US President-elect Donald Trump, there’s potential for new policies impacting Bitcoin’s market trajectory; a landscape where institutional players are driving substantial influence over Bitcoin’s price dynamics.

In a nutshell, Darwinian principles of supply and demand are very much at work within the Bitcoin market. As institutional momentum continues to grow, the potential for Bitcoin holds vast possibilities, which could reshape not just the financial sector but the entirety of the global economic system.

This content is edited using AI

Source: coinpaper.com