Bitcoin Price Could Skyrocket as OTC Desks Run Low on Supply – Here’s Why
The post Bitcoin Price Could Skyrocket as OTC Desks Run Low on Supply – Here’s Why appeared on BitcoinEthereumNews.com.
Declining OTC reserves could push institutional buyers to exchanges, triggering potential Bitcoin price surges. Institutional demand and low OTC supply may lead to a FOMO rally, increasing Bitcoin’s market value. Despite large purchases from institutional investors and whales, Bitcoin’s price has remained relatively stagnant at around $100,000. The reason for this is the dynamics of Over-The-Counter (OTC) markets. OTC desks enable large-scale buyers to purchase Bitcoin without impacting public exchange prices. A Bitcoin supply shock could be brewing 🚨 Why is Bitcoin still hovering around $100K while institutions and big players are stacking BTC? The answer lies in Over-The-Counter (OTC) markets. 🔹 OTC desks allow whales and institutions to buy BTC without impacting exchange order… pic.twitter.com/hRqgmfNVpA — raphael @ relai.app (@raphschoen) February 11, 2025 However, with OTC desk balances steadily declining, a possible supply shortage may be on the horizon. Once these OTC reserves are depleted, large buyers may have no choice but to turn to exchanges, leading to possible price surges. OTC markets have historically allowed institutional investors, including corporate buyers and market makers, to acquire Bitcoin without increasing the price. However, the supply of Bitcoin on OTC desks is decreasing. As of early 2025, the total balance available for over-the-counter trades was 140,000 BTC, which could quickly be exhausted. This declining supply of Bitcoin presents a situation where big players will likely need to buy directly from exchanges once these reserves are gone, which could result in upward pressure on Bitcoin’s price. Source: X A major factor contributing to the depletion of OTC reserves is the growing demand from institutional investors, including well-known entities like MicroStrategy, as reported by CNF. These large buyers often purchase Bitcoin in bulk via OTC transactions, keeping their activities hidden from public view. These buyers’ regular acquisition strategies could accelerate the current low…
Filed under: News - @ February 12, 2025 12:24 am