The post OTC Markets Gain Favor Amid Government Bitcoin Transactions appeared on BitcoinEthereumNews.com.

In recent events, Germany has been directly involved in purchasing and selling large volumes of Bitcoin in the market. At the beginning of their activities, they preferred exchange transactions, whereas, at present, there is a tendency towards OTC operations. This action is consistent with their approach to lowering market effects, a trend commonly seen in institutions. Bitcoin Market Stabilizes as Germany Shifts Tactics In the initial phase of the German government’s decision to sell Bitcoin, it adopted the strategy of using exchanges, which caused some market disturbances. They transferred a pretty good number of 19,521. 7 BTC, equal to around $1.14 billion, to entities believed to be engaged in the OTC market. This action led to a marked decline in the price of Bitcoin, and one can see this when Bitcoin dipped below $54,000 on July 5. Then, the government purchased 7,106 bitcoins from the CETI at a lower price and thus held 27,461 BTC worth about $1. 55 billion. We can observe the pattern of transactions that indicate a strategic switch to OTC sales to reduce the impact on Bitcoin’s market price. Spot On Chain team pointed to the government transaction method as a probable cause of Bitcoin’s market stability. As a result, the German authorities are changing their tactics and have started to work with market makers such as B2C2, Flow Traders, and Cumberland. This transition seeks to accomplish painless sales processes that do not disturb other market parts. Bitcoin Price Could Reach $100K in 2024 Nevertheless, these are significant transactions, though they are a drop in the bucket compared to the daily turnover of $36 billion. However, they have overshot market perception and, as a result, have caused panic and increased volatility among investors. Based on the analysis, Spot On Chain applied Vertex AI to predict the…

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Filed under: News - @ July 9, 2024 3:24 pm