Bitcoin is nearing all-time highs while daily inflows into OTC desks have decreased significantly, reaching the lowest levels of 2023. Approximately 416,000 Bitcoin worth around $30 billion have remained stable on these desks, indicating a strategic shift among high-net-worth investors to trade without affecting market prices. Current demand trends suggest that if the flow of Bitcoin into OTC desks continues to decline, upward price movement could be anticipated as investors navigate the shifting cryptocurrency landscape.

As Bitcoin approaches its all-time high, current market dynamics reveal a significant decrease in daily inflows into over-the-counter (OTC) desks, with levels dropping to their lowest in 2023. OTC desks hold approximately 416,000 Bitcoin, equivalent to around $30 billion, a figure that has remained constant for the past month. This trend suggests a strategic shift among sophisticated investors and high-net-worth individuals who utilize OTC desks to execute trades discreetly without impacting the spot-market price. The situation indicates that although Bitcoin has surged nearly 14% this month, nearly reaching the record of $73,798 set in March, OTC activity is experiencing a downward trajectory. This month’s movement towards all-time highs has coincided with an unusual scenario where OTC desks, which have seen an increase of over 200,000 BTC over the past five months, are now seeing reduced daily inflows. Current trading volumes stand at an average of 90,000 Bitcoin in October, marking a 52% decline from the first three quarters of the year. The relative stability of Bitcoin on OTC desks allows U.S. spot-listed exchange-traded funds (ETFs) to engage in buying activities without triggering immediate market volatility. In contrast to the first quarter, when daily purchases by Bitcoin ETFs represented between 9% and 12% of the total supply on OTC desks, current acquisitions constitute a mere 2%. The overall OTC desk balance has not fluctuated significantly since September, indicating a consolidation phase that suggests potential future volatility. For Bitcoin to achieve new price highs, an increase in daily inflows to OTC desks is essential. If demand for Bitcoin persists concurrently with low inflows into OTC desks, it may lead to an upward trajectory in Bitcoin prices, setting the stage for potential new peaks in the Bitcoin market, contingent upon sustained demand among investors.

The cryptocurrency market continues to evolve, with Bitcoin often leading the way as the most significant digital asset by market capitalization. Over-the-counter (OTC) trading has emerged as a preferred method for large-scale investors to conduct transactions while avoiding large fluctuations in market prices. This strategy has allowed investors to manage their trades more discreetly, particularly in a landscape where market sentiment can pivot quickly. The implications of changing OTC desk activities reflect broader trends in investor behavior and market dynamics, especially as institutional adoption of cryptocurrencies grows steadily.

In summary, as Bitcoin nears its historic price levels, the observed drop in daily OTC desk inflows to the lowest point this year presents a complex picture of the market’s near-term potential. The constancy of Bitcoin held in OTC desks, combined with a notable decrease in inflows, could indicate a strategic market adjustment among sophisticated investors. Should demand continue while inflows remain subdued, Bitcoin might see upward pressure, potentially leading to new all-time highs in its valuation, which warrants close observation.

Original Source: www.coindesk.com

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