Bitcoin Supply on OTC Desks Nearly Dried up
Taking to X, the Custodia Bank CEO disclosed that she recently spent some time in New York for a few days, and during her stay, she discovered the reason behind the recent $BTC surge. According to her, institutions trading on OTC desks nearly ran out of $BTC to buy.
The #HODLgang has mostly held…I spent time in NYC over the past couple of days and it’s clear why the #bitcoin price spiked this week: there was almost no #$BTC available for sale on the big OTC desks…💎🙌 pic.twitter.com/Yq76yH7OuZ
— Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) March 1, 2024
Andrew, a Bitcoin and finance proponent, called attention to Long’s disclosure in a post today, noting that the drop in Bitcoin supply on OTC desks resulted in an inability to meet the surging demand for the token from institutional players.
When an X user asked for more context on the amount of $BTC available on these OTC desks, Long personally replied. She confirmed that at some point on Wednesday, there were only 40 $BTC tokens available for trading on OTC desks despite institutional investors eagerly looking to procure more tokens.
Only ~40 #$BTC available for sale at any price at one point on Wednesday, I was told by a credible source…
— Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) March 1, 2024
Andrew emphasized that this confluence of dried-up supply and increased demand resulted in the spike in Bitcoin’s price on Wednesday. Notably, $BTC surged from an opening price of $57,037 to a top of $64,000 on Wednesday, marking an impressive 12% rise.
Wednesday, Feb. 28, was one of Bitcoin’s best days, as the asset breached multiple psychological resistance levels from $58,000 to $63,000. Despite witnessing intense resistance at the $64,000 high, the crypto asset held strong above $62,000, closing the day with a massive 9.46% gain.
André Dragosch, Head of Research at ETC Group, shared Glassnode data confirming the decreasing supply of Bitcoin on OTC desks. According to Dragosch, the $BTC balance on OTC desks yesterday stood at 388 tokens as demand surged.
Data from CryptoQuant also confirms that institutional investors in the U.S. have continued to buy more $BTC tokens, contributing to a high buying pressure. Notably, the Coinbase Premium Index recently recorded a massive spike as more institutions leveraged Coinbase for $BTC purchases.
Meanwhile, $BTC currently trades for $62,495 following the drop from $64,000. The asset shed off some of its gains yesterday but has begun recouping them with a 2.14% increase today. Veteran traders such as Peter Brandt expect the asset to hit $200,000 this cycle.
thecryptobasic.com
