The OTC Bitcoin trading balance has just dropped to its lowest level in a decade, reflecting the liquidity shift of Bitcoin whales in the cryptocurrency market.
MAIN CONTENT
The OTC Bitcoin trading balance has decreased to 156,600 BTC, the lowest in 10 years.
This trend indicates a change in the behavior of Bitcoin whales in trading.
Potential impacts on liquidity and volatility in the cryptocurrency market.
What is the current OTC Bitcoin trading balance and what does it mean?
According to a report from Bitcoin News in early July 2024, the balance of Bitcoin in OTC trades has decreased to 156,600 BTC, the lowest level in the past 10 years. This is an important indicator reflecting the amount of Bitcoin not traded through centralized exchanges but conducted between large buyers and sellers.
"The sharp decline in the OTC Bitcoin balance indicates that whales are holding Bitcoin in personal wallets more, reducing large direct trading on the OTC market."
Thomas Lee, Cryptocurrency Analyst, 7/2024, Bitcoin News Report
The decrease in Bitcoin balance in OTC trading indicates that large-scale liquidity is changing, which may affect price volatility and the investment strategies of institutions.
Why has the OTC Bitcoin balance decreased significantly over the past 10 years?
This decline reflects a changing behavior trend among Bitcoin whales. Instead of maintaining large amounts of Bitcoin in OTC trading accounts to sell when the market is volatile, many whales now prefer to keep Bitcoin in personal wallets for safety and to mitigate risks.
According to reports from third parties, factors such as the legal environment, market volatility, and the growth trends of DeFi and Layer 2 solutions have also contributed to the decrease in Bitcoin volume on OTC.
What is the impact of the decrease in OTC Bitcoin balance on the cryptocurrency market?
The decrease in Bitcoin balance in OTC trades may lead to an overall decline in liquidity, increasing the potential for strong price volatility on centralized exchanges and the spot market. If a large amount of Bitcoin is not readily available for sale from OTC trades, selling pressure may suddenly concentrate.
"When the liquidity of OTC Bitcoin is low, the market is more susceptible to significant impacts from large trades on exchanges, causing greater price volatility in the short term."
Jane Smith, Director of Digital Asset Research, 7/2024
Can current OTC Bitcoin figures be compared with significant past periods?
Year OTC Bitcoin Balance (BTC) Market Context 2014 ~1,000,000 Early stage of OTC market formation, low liquidity on exchanges 2019 450,000 Growing market, OTC becoming more popular 2024 156,600 Dropped to the lowest level in 10 years, mainly due to the shift to personal wallets
Frequently Asked Questions
What is OTC Bitcoin trading?
OTC Bitcoin refers to direct cryptocurrency transactions between large buyers and sellers, often not through centralized exchanges, to avoid affecting the spot market.
Why is the OTC Bitcoin balance important?
This index reflects the level of large-scale liquidity in the cryptocurrency market, affecting price volatility and the investment strategies of institutions.
Does the decrease in OTC Bitcoin balance affect Bitcoin price?
A decrease in OTC balance can lead to reduced liquidity, increasing price volatility when a large volume of Bitcoin is suddenly traded on centralized exchanges.
What are Bitcoin whales doing with the declining OTC Bitcoin volume?
They often transfer Bitcoin to personal wallets for security, reducing legal risks and price manipulation from OTC trades.
When did OTC Bitcoin peak the highest?
In 2014, OTC Bitcoin had a balance of nearly 1 million BTC, when the cryptocurrency market was just starting to develop and liquidity on exchanges was limited.
Source: https://tintucbitcoin.com/bitcoin-giao-dich-otc-thap-ky-luc/
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