Bitcoin OTC Trading Dominance Surpasses 82%... "Coinbase is Sweeping It All Up"

▲ Bitcoin (BTC) / AI-generated image

The liquidity in the Bitcoin (BTC) market is rapidly shifting from centralized exchanges to the over-the-counter (OTC) market, accelerating a massive accumulation phase led by institutional investors.

Cryptocurrency specialized media outlet Bitcoinist reported on April 12 (local time) that Bitcoin's over-the-counter (OTC) trading dominance has soared to 82%, reaching an all-time high. This phenomenon occurred as Bitcoin recently surged by about 9%, breaking past the $73,300 mark. Market experts analyzed that large-scale capital flows, not passing through public exchange order books, have emerged as a key factor in price determination.

Among centralized exchanges (CEXs), Coinbase is leading the capital flow and acting as a gateway for institutional investors. Bitcoinist confirmed that Coinbase's deposit and withdrawal data overwhelms other exchanges, and the majority of volume is being processed through OTC desks. Institutions prefer OTC trading methods to acquire large quantities of Bitcoin without directly impacting market prices.

The fact that OTC trading dominance has reached 82% signifies a structural change in market liquidity. While the influence of public exchanges, primarily used by individual investors, has relatively weakened, the movements of whales, who move large capital, have become more discreet and powerful. This supply-demand imbalance arises because the continuous inflow of institutional funds through Bitcoin spot ETFs is rapidly absorbing the market's supply.

Changes in the macro environment are also stimulating institutional buying sentiment. The partial easing of tensions between the US and Iran, leading to a renewed preference for risk assets, has bolstered Bitcoin's upward rally. Bitcoinist predicts that the activation of the OTC market will secure downside rigidity for Bitcoin's price in the future, while also acting as a catalyst for unexpected explosive surges.

Bitcoin is currently riding a massive wave of institutional liquidity, preparing to set new all-time highs. The expansion of OTC trading volume is an indicator of market maturity and simultaneously proves large investors' confidence in long-term holding. Investors are closely monitoring the inflow and outflow trends of funds from major exchanges, including Coinbase, and changes in OTC market dominance to gauge Bitcoin's future direction.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*