[ad_1]
While the volume of centralized trade has declined overall, the OTC (over-the-counter) Bitcoin markets have seen a surge in buyers leading to a shortage of sellers, according to Diar's latest data. This may suggest that institutional investors are quietly stocking bitcoins while trying to keep prices down for the time being.
Bitcoin OTC trading is booming
Most experts expect institutional investors to create the catalyst for the next upward run of cryptocurrency. But research shows that institutional trading loses ground in traditional handbags volumes this year. However, OTC markets have seen an exponential increase in buyers leading to a shortage of sellers. Could this be the point where institutional funds are now going?
The latest research, published by diar compares Bitcoin volumes on Coinbase (during the OTC hours) and the Bitcoin Investment Trust (GBTC) traded on Greyscale. While 2017 has seen roughly equal trading volumes between the two, this year, especially in recent months, has witnessed a divergence in trends.
During the OTC trading hours, the volume of Bitcoin exchanges on Coinbase increased by 20%.
However, GBTC volumes decreased by 35% in 2018 during the same period last year. This is despite the Grays Scale which recorded a record investment of $ 216 million in the first three quarters of this year – an inflow that meant that Greyscale now holds custody of more than 1% of the total. circulating Bitcoin offer.
Researchers a diar Note:
[A]re institutional operators holding off or moving to over-the-counter physical Bitcoin markets with higher liquidity? The answer is probably a bit of both.Are whales accumulating for $ 4?
In a market that remains highly volatile, cryptocurrency trading has a continuous natural advantage. But for high demand liquidity institutional traders still have to look at OTC trading desks. Another advantage is that OTC markets have a less immediate impact on the spot price of bitcoins 00.
Therefore, large-scale investors, such as "whales", could use OTC markets to their advantage, buying large amounts of bitcoins without causing an immediate price increase. Subsequently, the whales could then re-emerge in trade to sell some bitcoins to keep prices low. Rinse and repeat until the accumulation is complete.
Therefore, it may not be so surprising that OTC services have grown in popularity in recent months, as the price of BTC has fallen to annual lows. Indeed, many important exchanges are now fueling a growing appetite for customers for OTC services.
Peer-to-peer exchange CEO HodlHodl, Max Keidun, reports an exponential growth in OTC volumes with large order requests doubled every month.
This made it "more difficult than usual to find a seller at current prices," said Keidun, whose platform recently launched an unattended OTC service.
"There was a lively Bitcoin OTC trading market operating in parallel with existing exchanges, but none of them offers unsecured escrow security services that would eliminate the risk of losing funds," he said.
Interested in whale watching? Here you can find and track the recent transactions of the richer Bitcoin addresses.
Do institutions buy bitcoins quietly at lower prices? Share your thoughts below!
Images kindly granted by Diar.co, Shutterstock
