The so-called OTC desk balance stood at 5,138 BTC, about $150 million at BTC’s current market price of $29,225, according to data tracked by Glassnode. This is a 33% slide from the one-year high of 7,697 BTC at the end of June. Crypto investors, like their traditional market counterparts, can transact on an exchange or through an over-the-counter desk. High-volume traders and institutions typically deal with OTC desks to avoid affecting the market price of the asset.
In the past, some analysts have associated upticks and downticks in OTC desk balances with miners’ intention to build/run down their coin stash. However, drawing definite conclusions from changes in the desk balances may be risky because they are exposed to address-labeling issues. The balance itself does not reflect whether the desk is accumulating or looking to liquidate coins on behalf of their clients.
BTC accumulation by OTC desks could mean that they are buying on behalf of clients OR it could mean that clients are passing their BTC to OTC desks to be sold, Noelle Acheson, the author of Crypto is Macro Now newsletter, told journalists.
The amount of bitcoin held in addresses tied to OTC desks has dropped to its lowest level since June 15. This 33% decline from the one-year high of 7,697 BTC at the end of June is a sign that large, sophisticated traders may be looking to liquidate coins on behalf of their clients. However, it is difficult to draw definite conclusions from changes in the desk balances due to address-labeling issues.