Massive Inflow of BTC to OTC Desks Highly Reminiscent of Early 2021 Bull Market
May 13, 2024
The recent stagnation in Bitcoin (BTC) prices has been accompanied by a massive influx of Bitcoin into over-the-counter (OTC) trading venues, a trend that has historically heralded the approach of local highs and lows.
According to data shared by CryptoQuant, the number of BTC on OTC desks currently stands at 205,000 BTC, which is the highest level since the FTX crash in November 2022. In the past 30 days alone, approximately 43,000 BTC have been moved to these counters, which is the largest monthly inflow since May 2022, when BTC fell to lows around $15,000 following the collapse of the Terra/LUNA ecosystem.
This pattern is reminiscent of the bull market that peaked in early 2021. During this period, OTC counter balances rose from 220,000 BTC in December 2020 to a high of 420,000 BTC in May 2021, ultimately marking the peak of the 2021 market cycle as institutional investors sought to capitalize on profits.
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