Bitcoin OTC Balances Decline, Raising Market Supply Questions

Bitcoin has experienced a challenging period recently, with its price consistently declining over the past several days. After failing to maintain its position above the six-figure mark, the leading cryptocurrency now trades below $97,000.

At the time of writing, BTC trades at a price of $96,939, marking a 0.8% decline in the past day and a 10.9% decrease from its peak established in January. This downturn comes amid several underlying factors that are also related to on-chain developments.

Bitcoin OTC Balances Decline: The Implications

One notable trend has been recently highlighted by CryptoQuant contributor Darkfost, concerning the sharp decline in Bitcoin’s over-the-counter (OTC) desk balance.

Notably, institutional players—such as hedge funds, governments, and large corporations—have traditionally relied on OTC desks to acquire Bitcoin without impacting the broader market.

However, Darkfost points out that since September 2021, the OTC balance has dropped from approximately 480,000 BTC to just 146,000 BTC as of now.

Bitcoin OTC Desk balance is declining sharply

“In September 2021 the OTC desk balance was around 480k BTC and today it sits at 146k BTC left.” – By @Darkfost_Coc

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