Bitcoin OTC Market Sees Highest Levels Since May 2022

According to Odaily, data from CryptoQuant reveals that the total amount of Bitcoin in the over-the-counter (OTC) market has surpassed 410,000 BTC, marking the highest level since May 2022. This figure is more than double the 185,000 BTC recorded in March. The balance indicates the liquidity available for purchase or sale at OTC desks, with a high balance suggesting strong liquidity and the ability to complete large orders. Conversely, a low balance may indicate greater difficulty in executing trades. OTC clients are primarily high-net-worth individuals or institutions outside of retail trading platforms. OTC trading allows for large transactions without impacting the Bitcoin price on centralized exchanges (CEX). The data shows a significant increase in OTC balances over the past six months, while Bitcoin has been on a downward trend since its all-time high of $73,500 in March. The rise in balances is reminiscent of the period from late 2020 to early 2021, when OTC balances surged from 235,000 BTC to 435,000 BTC within six months. However, unlike that period, Bitcoin prices are currently experiencing a slight decline.