Over-the-counter (OTC) crypto desks are now holding 368,000 bitcoin (BTC) worth over $22 billion, according to data from tracking firm CryptoQuant. This marks an increase of 153,000 BTC in just three months, bringing balances to their highest level since June 2022.
OTC desks facilitate large transactions between buyers and sellers without impacting the public market, making them a preferred method for institutions, high-volume traders, and miners. Unlike traditional exchange order books, these transactions are handled privately, allowing sophisticated market participants to trade significant volumes discreetly.
CryptoQuant highlighted that miners, in particular, often opt for OTC deals to sell bitcoin, ensuring they achieve better execution prices without causing a noticeable dip in market value. The recent surge in OTC desk balances could signal heightened selling activity among miners.
“Historically, increases in bitcoin OTC desk balances have been associated with declines in bitcoin prices,” CryptoQuant noted in its report. As these balances grow, they may indicate bearish sentiment among large holders and a potential downward pressure on bitcoin’s price.
At the time of reporting, bitcoin was trading at $61,350, with analysts closely monitoring whether the rising OTC activity will translate into broader market effects.
