Darkfost
Bitcoin OTC Desk balance is declining sharply: Could this constitute a key factor in this cycle ?
Institutional players, including hedge funds, governments, and large corporations, have traditionally used OTC desks to acquire Bitcoin without impacting the market. ๐ฅIn September 2021 the OTC desk balance was around 480k BTC and today it sits at 146k BTC left. This decline has persisted, even after Bitcoin reached $100k reflecting sustained, strong demand. -> Where will they buy so? When this balance will be fully empty, all buying will have to occur directly on exchanges, which could significantly impact BTC's price. By looking at the sell side liquidity inventory, we can observe that US exchanges currently hold almost 1M BTC. Miners could also sell their BTC via OTC, but their current balance is around 117k BTC, and not all miners rely on OTC transactions.