The availability of bitcoin (btc) on over-the-counter (OTC) desks has decreased dramatically, with reports suggesting that at one point, only around 40 btc were available for sale. This news has major implications for the market and could herald a new era in btc trading dynamics.
OTC desks had 40 bitcoin available on Wednesday
Caitlin Long, CEO and founder of Custodia Bank, provided an insightful account of the current state of the bitcoin OTC market. Through a series of posts on X (formerly Twitter), Long noted“The #HODLgang has mostly held up… I spent some time in New York over the past few days and it's clear why the price of bitcoin skyrocketed this week: there was almost no btc available for sale on the large OTC counters.”
Echoing Long’s observations, Samuel Andrew, a leading figure in the crypto space, added: “OTC desks are almost sold out. There are very few bitcoin available that are easily accessible to meet the demand. “BlackRock and Fidelity are changing size in a way that cryptocurrencies have never seen before.” Long aggregate:
Only ~40 btc were available for sale at any price at one point on Wednesday, a credible source told me…
This shortage of btc on OTC desks is not an isolated incident but part of a broader trend that indicates a significant change in the market. Glassnode, a leading blockchain data and analytics company, reported that Bitcoins held on OTC desks are at their lowest level in five years. Although Glassnode tracks only a portion of the OTC market, the data points to a clear trend of declining btc availability.
What this means for the price of btc
The implications of this trend are multiple. Firstly, it suggests a possible supply shock in the bitcoin market, driven by increased demand from institutional investors and large corporations looking to add bitcoin to their portfolios, as well as the introduction of spot bitcoin ETFs. This supply shock could lead to a shift in pricing from OTC desks to public exchanges, where the actual market price of bitcoin will be determined more transparently.
The scarcity of bitcoin on OTC desks also means that large investors and ETFs like BlackRock and Fidelity, who traditionally purchased wholesale bitcoin at a discount through these desks, may no longer have this option. This could further drive demand on public exchanges, which could lead to significant price movements.
Analysts are already speculating about the possible results of this situation. Alessandro Ottaviani, a prominent analyst, He suggested“After today, divine candles ($10k a day), before the halving, are possible and realistic.”
This feeling was echoed by Francis Pouliot, CEO of Bull bitcoin, who highlighted 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: “$100,000 by halving the day. People are starting to believe. Bears, rekt leveraged shorts, scared, take profit limit orders moved up or simply removed to wait and see; Coinless OTC desks, $500M/10,000 btc daily ETF buy walls. This can open quickly. “There are 51 days left (until the halving).”
In conclusion, the depletion of btc supply on OTC desks marks a crucial moment for the market. With the upcoming halving event in April and institutional interest at an all-time high, the stage is set for potentially unprecedented moves in the bitcoin market.
At the time of publication, btc was trading at $61,903.
Featured image created with DALLE, TradingView.com chart
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