• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Price & Market
Cap Data from
Nomics Logo Nomics Logo
Bitcoinist.com
Join Student Coin ICO
No Result
View All Result
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining
Bitcoinist.com
No Result
View All Result
Bitcoin OTC over the counter
Nexo

Bitcoin OTC Trading Volume Soars as Institutions May Be Accumulating

Emilio Janus by Emilio Janus
2 years ago
in Bitcoin, Bitcoin Exchange, Markets and Prices, News, News teaser
0

While volume on centralized exchanges is down as a whole, Bitcoin OTC (over-the-counter) markets have seen a surge in buyers leading to a shortage of sellers, according to the latest data from Diar. This may suggest that institutional investors are quietly stocking up on bitcoin while looking to keep prices low for the time being. 


Bitcoin OTC Trading is Booming

Most pundits expect institutional investors to create the catalyst for the next cryptocurrency bull-run. But research shows institutional trading losing ground in volumes on traditional exchanges this year. However, OTC markets have seen an exponential increase in buyers leading to a dearth of sellers. Could this be where the institutional money is now heading?

The latest research, published by Diar compares Bitcoin volumes on Coinbase (during OTC hours) and Greyscale’s OTC-traded Bitcoin Investment Trust (GBTC). While 2017 saw roughly equal trading volumes between the two, this year, especially the past few months, has witnessed a divergence in trends.

During OTC market hours, Bitcoin trading volume on Coinbase has increased by 20%.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

However, GBTC volumes are down 35% in 2018 during the same period last year. This is despite Greyscale bringing in a record $216 million of investment in the first three-quarters of this year – an inflow which has meant Greyscale is now holding custody of over 1% of Bitcoin’s circulating supply.

The researchers at Diar note:

[A]re institutional traders keeping at bay or have they shifted towards higher liquidity over-the-counter physical Bitcoin markets? The answer is likely a little bit of both.

Are Whales Accumulating at Sub $4K Price?

In a market, which remains highly volatile, round-the-clock cryptocurrency exchanges have a natural advantage. But for high-demand liquidity Institutional traders must still look to OTC trading desks. Another advantage is that OTC markets have less of an immediate impact on the bitcoin spot price [coin_price].

Therefore, large-scale investors, i.e. ‘whales,’ could use OTC markets to their advantage, buying large quantities of bitcoin without causing the price to immediately rise. Subsequently, the whales could then resurface on exchanges to sell some bitcoin to keep prices low. Rinse and repeat until accumulation is complete.

Therefore, it may not be that surprising that OTC services have grown in popularity in recent months as BTC price has dropped to yearly lows. Indeed, many major exchanges are now catering to an increasing appetite from clients for OTC services.

CEO of peer-to-peer exchange HodlHodl, Max Keidun, reports exponential growth in OTC volumes with large-order requests doubling each month.

This has made it “harder than usual to find a seller at current prices,” explained Keidun, whose platform recently launched a non-custodial OTC service.

“There has been a vibrant OTC Bitcoin trading market operating in parallel to the existing exchanges, but none of them are offering non-custodial escrow services for cryptocurrencies which would eliminate the risk of losing funds,” he said.

Interested in whale watching? You can find and track the recent transactions of the richest Bitcoin addresses here.

Are institutions quietly buying bitcoin at lower prices? Share your thoughts below!


Images courtesy of Diar.co, Shutterstock

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Emilio Janus

Emilio Janus

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2021 Bitcoinist.com. All Rights Reserved.
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.