Bitcoin Nears ATH As Daily OTC Desk Inflows Slip To 2024 Lows, Data Shows

bitcoinist发布于2024-10-31更新于2024-10-31

文章摘要

As Bitcoin (BTC) continues to tease a new all-time high (ATH), daily over-the-counter (OTC) desk inflows have plummeted to yearly...

As Bitcoin (BTC) continues to tease a new all-time high (ATH), daily over-the-counter (OTC) desk inflows have plummeted to yearly lows. 

Bitcoin’s “Uptober” Narrative Remains Intact

Bitcoin has overturned the sluggish start to its historically most bullish month, recording more than 13% gains in October and coming within reach of a new ATH. 

The leading digital asset’s performance has restored faith in the “Uptober” narrative as it looks to record its biggest one-month gains since March 2024, when it achieved its current ATH of $73,737.

Data from crypto analytics firm CryptoQuant indicates that BTC balance with OTC desks has swelled to 416,000 – worth approximately $30 billion. In comparison, OTC desks averaged less than 200,000 BTC during Q1 2024.

For the uninitiated, OTC desks are typically used by sophisticated and seasoned investors to trade the underlying asset without impacting its spot market price. OTC trades also enable institutional investors to make trades without showing their transactions on an exchange’s trading books.

The high amount of BTC held by OTC desks allows US-based spot exchange-traded funds (ETF) to buy BTC without affecting its spot price.

How Do OTC Desk Inflows Impact Bitcoin Price?

According to data from SoSoValue, spot BTC ETFs attracted a daily total net inflow of more than $870 million on October 29. However, this figure only represents about 2% of the total BTC currently held by OTC desks. 

In comparison, during Q1 2024 – when BTC made its ATH following the ETF approval – the amount of BTC purchased by spot ETFs as a proportion of OTC-held BTC reserves ranged between 9% and 12%. 

Since the beginning of September, the total OTC desk balance has been stable. The 30-day change – a metric that tracks the net change in the amount of BTC held over the last 30 days – stood at 3,000 BTC in September versus 92,000 BTC in June.

The 30-day change was in negative territory during Q1 2024, indicating strong demand for accumulation from large buyers as more BTC was withdrawn from OTC desks than deposited.

Conversely, a positive 30-day change means more BTC was deposited than withdrawn, potentially signaling reduced buying interest or even selling activity. 

As mentioned earlier, daily OTC desk inflows have fallen from their June highs, reaching their lowest level in 2024. A further decline in daily OTC desk inflows could propel BTC to new highs. 

Data from CryptoQuant shows that OTC desks averaged close to 90,000 BTC in October, a steep decline of more than 52% compared to Q1, Q2, and Q3 2024. 

Recently, Markus Thielen, head of research at 10X Research, remarked that there are “exceptionally high” chances of a crypto rally in Q4 2024.

The combination of a strong demand for BTC, coupled with limited OTC supply, holds the potential to push the crypto-asset to a new ATH. BTC trades at $72,002 at press time, down 0.7% in the past 24 hours.

bitcoin
BTC trades at $72,002 on the daily chart | Source: BTCUSDT on TradingView.com
Featured Image from Unsplash.com, Chart from TradingView.com
Ash Tiwari

Ash Tiwari

Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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