The availability of Bitcoin (BTC) on Over-the-Counter (OTC) desks has sharply decreased, with studies suggesting that at one level, solely about 40 BTC had been obtainable on the market. This information has important implications for the market and will herald a brand new period in BTC buying and selling dynamics.
OTC Desks Had 40 Bitcoin Available On Wednesday
Caitlin Long, the CEO and founding father of Custodia Bank, offered an eye-opening account of the present state of the OTC Bitcoin market. Through a collection of posts on X (previously Twitter), Long noted, “The #HODLgang has mostly held…I spent time in NYC over the past couple of days and it’s clear why the Bitcoin price spiked this week: there was almost no BTC available for sale on the big OTC desks.”
Echoing Long’s observations, Samuel Andrew, a famous determine within the crypto area, added, “OTC desks are nearly dried up. Very little Bitcoin available that’s easily accessible to meet demand. BlackRock and Fidelity are moving size in ways crypto has never seen before.” Long added:
Only ~40 BTC had been obtainable on the market at any value at one level on Wednesday, I used to be instructed by a reputable supply…
This shortage of BTC on OTC desks just isn’t an remoted incident however a part of a broader development indicating a big shift out there. Glassnode, a number one blockchain information and analytics agency, reported that Bitcoins held by OTC desks are at their lowest stage in 5 years. (*40*) Glassnode tracks solely a portion of the OTC market, the info factors to a transparent development of dwindling BTC availability.
What This Means For BTC Price
The implications of this development are manifold. Firstly, it suggests a possible provide shock within the Bitcoin market, pushed by elevated demand from institutional buyers and huge firms wanting so as to add Bitcoin to their portfolios, in addition to the introduction of spot Bitcoin ETFs. This provide shock might result in a shift in value discovery from OTC desks to public exchanges, the place the true market value of Bitcoin will likely be decided extra transparently.
The scarcity of Bitcoin on OTC desks additionally signifies that giant buyers and ETFs like BlackRock and Fidelity, who historically purchased Bitcoin in bulk at a reduction by way of these desks, might not have this feature. This might additional drive demand on public exchanges, doubtlessly resulting in important value actions.
Analysts are already speculating on the doable outcomes of this example. Alessandro Ottaviani, a distinguished analyst, suggested, “After today, god candles ($10k in the daily), before the halving are possible and realistic.”
This sentiment was echoed by Francis Pouliot, CEO of Bull Bitcoin, who remarked on the self-correcting nature of the market: “OTC desks like http://BULLBITCOIN.COM never run out of Bitcoin. The price goes up, and people sell. If people don’t sell, the price goes up more.”
Adam Back, a Bitcoin OG and cypherpunk, provided a bullish outlook, stating, “$100k by halving day. People starting to believe. Bears, leveraged shorts rekt, scared-off, profit take limit orders moved upwards or just deleted to wait-and-see; OTC desks out of coins, daily $500m / 10k BTC ETF buy walls. This can gap upwards fast. 51 days to go [until Halving].”
In conclusion, the depletion of BTC provide on OTC desks marks a pivotal second for the market. With the upcoming halving occasion in April and institutional curiosity at an all-time excessive, the stage is about for doubtlessly unprecedented actions within the Bitcoin market.
At press time, BTC traded at $61,903.
Featured picture created with DALLE, chart from TradingView.com
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