The BTC balance on the OTC market has increased to 62,000 BTC in the last 30 days.#CryptoSlatedata shows this.
This figure is the maximum since October 2021.
At the same time, according to #CryptoQuant, the transfer by miners of their BTC via OTC over the past two months amounts to 71,000 BTC.
Such activity in the OTC market may just be a significant reason why, despite generally not a small institutional demand, the price of BTC is marking time. Part of the demand does not reach the exchange market. Institutions are incentivized to gain positions through OTC to avoid influencing market prices. And often - and sell it through him at a favorable price.
But there is an important point - the OTC market is not bottomless. The supply supplied there will dry up given stable demand and limited assets. One of the key suppliers of#BTCto the OTC market is miners.#CryptoQuantlast week already talked about signs of capitulation among Bitcoin miners. And this week the fact of the end of capitulation was confirmed by the Hash Ribbons indicator.
If this is so and the “sale” ends, the “faucet” in the form of the OTC market for institutions will close. And, if demand continues or grows, they will clearly have to go for#BTCon exchange trading. Which will push the BTC price up.
The scenario may now be met with skepticism, given the outflow of hundreds of millions of dollars from spot Bitcoin ETFs in recent days. But if trading in this instrument has taught us anything since January, it’s that clients of spot Bitcoin ETF issuers often behave like hamsters. They sell during drawdowns and actively buy during growth. Therefore, it is not worth taking their current moods and actions as a hint on the future of the market.