The post Bitcoin Demand Surges as OTC Desk Inventories Plummet appeared on BitcoinEthereumNews.com.

Bitcoin’s demand is experiencing a remarkable surge, causing a significant drop in the inventories of over-the-counter (OTC) trading desks. This trend has tightened the supply of Bitcoin in the market, building momentum for further price increases as 2024 comes to a close. The current dynamics highlight a resurgence in investor interest, driving speculation about Bitcoin’s trajectory in 2025. Bitcoin demand is surging. OTC desks are experiencing their largest monthly inventory decline of 2024, down 26k BTC. Total balance has dropped 40k BTC since Nov 20, tightening supply. Market momentum building. pic.twitter.com/BWUNJerV09 — CryptoQuant.com (@cryptoquant_com) December 20, 2024 According to Cryptoquant, The largest monthly inventory decline of the year was recorded by OTC desks, with a reduction of 26,000 BTC in December alone. Since November 20, 2024, the total OTC Bitcoin balance has dropped by 40,000 BTC, signaling an intense wave of accumulation by institutional and high-net-worth investors. This decline indicates growing demand outpacing supply, as Bitcoin continues to capture attention amidst a tightening market. OTC desks play a pivotal role in the cryptocurrency ecosystem, providing a private and efficient channel for large-scale Bitcoin transactions. A reduction in their inventory levels often reflects heightened interest from big players who prefer discreet purchases to avoid influencing market prices. The surge in demand comes on the heels of Bitcoin’s impressive rally earlier in 2024, which saw its price climb from $40,000 to $74,000 in Q1. This growth was largely fueled by demand-driven inventory declines at OTC desks, creating a bullish momentum that persisted through much of the year. The current supply squeeze echoes similar dynamics, indicating the potential for renewed upward price movements. With OTC inventories continuing to decline, market participants anticipate increased volatility and further upward pressure on Bitcoin’s price. A tightened supply often leads to reduced selling pressure on exchanges, which,…

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Filed under: News - @ December 22, 2024 3:07 pm