Entering the fourth quarter, many investors are optimistic that the currency market will return to strength and expect Bitcoin's "October peak season effect (Uptober)" to once again show its power. However, according to the latest analysis, it has recently switched to over-the-counter trading (OTC). ) The number of Bitcoins on the platform has surged, which may bring headwinds to the cryptocurrency market.
According to data from CryptoQuant, the total number of Bitcoins currently on major OTC platforms exceeds 410,000, hitting the highest level since May 2022, and is higher than the 185,000 Bitcoins seen in March. More than double.
This balance figure can show the scale of liquidity available for buying and selling Bitcoin on the OTC platform; a high balance represents strong liquidity and the ability of the OTC trading platform to handle large orders. On the other hand, if the balance is lower, it means it is more difficult to make a transaction.
So, who uses an OTC trading platform? Mainly high-net-worth individuals or institutions, through OTC trading, can avoid risks that affect the price of Bitcoin on traditional cryptocurrency exchanges.
Data shows that Bitcoin balances on OTC platforms have been increasing significantly in the past six months. During the same period, Bitcoin has fallen from a record high of $73,500 in March and continued to fluctuate in a downward channel.
This increase in balance is very similar to the situation from the end of 2020 to the beginning of 2021. At that time, the OTC balance also surged from 235,000 Bitcoins to 435,000 Bitcoins within 6 months. However, the difference is that the Bitcoin price was rising at that time. rose and is now relatively weak.
During the 2022 bear market, OTC balances shrank as Bitcoin prices fell, showing net buying.
If investors want to see Bitcoin continue its bullish trend in the fourth quarter, then one of the necessary factors is "the balance of the OTC platform has declined", which will help support further market strength.
〈Bitcoin will have a bull market in October? Analysis: Beware of the flash warning "OTC market balance surges" This article was first published on "Block Guest".
