⚡️ Bitcoin OTC balance soars, market undercurrent surges: Is it a bargain-hunting opportunity or a risk warning?
Bitcoin OTC balance hits new high
Latest data: On October 1, CryptoQuant data showed that the total balance in the Bitcoin OTC market has exceeded 410,000, setting a new high since May 2022.
Enhanced Liquidity: This level of balance means that the OTC desk has significantly enhanced liquidity and can easily handle the purchase or sale of large orders.
Compared with the balance of only 185,000 coins in March, the current number has more than doubled.
OTC trading characteristics: OTC trading mainly serves high-net-worth individuals or institutions outside of retail trading platforms, allowing large transactions without affecting the price of Bitcoin on centralized exchanges (CEX).
Historical comparison: Over the past six months, OTC balances have risen significantly, similar to what was seen in late 2020 and early 2021.
At that time, the balance soared from 235,000 coins to 435,000 coins in six months. However, the difference is that the price of Bitcoin was rising at that time, while currently it is falling slightly.
Market Impact: Despite the downward trend in Bitcoin prices, the increase in OTC balances still shows strong demand and liquidity for Bitcoin.
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