Crypto over-the-counter (OTC) desks, which facilitate high-volume transactions among buyers and sellers, currently hold 368,000 bitcoin (BTC), valued at a staggering $22 billion in current market prices. This marks the highest level seen since June 2022.
A report from on-chain analyst CryptoQuant revealed that the $22 billion in BTC was propelled by a notable 70% surge in balances in the past three months. Specifically, the number of bitcoins held in wallets tied to OTC desks rose from 215,000 BTC (approx. $13 billion) in June to 368,000 BTC ($22 billion) this month, CryptoQuant said. This represents an impressive addition of 153,000 BTC ($9.2 billion) during the three-month span.
Miners Are the Major Contributors
OTC desk acts as a matchmaker facilitating direct high-volume transactions between buyers and sellers without involving a public order book. These platforms help large investors place large orders discreetly and get them filled without severely impacting the market.
Among large investors, miners have been pointed out as a significant contributor to the growing bitcoin balance in OTC desks.
CryptoQuant noted that they often turn to OTC deals to sell their BTC, “seeking better execution without impacting the market price as they might on exchanges.”
The analytics platform added that the notable increase in OTC desk BTC balances indicates substantial selling activity among miners.
A Recurring Trend
CryptoQuant pointed to a recurring trend associated with increased Bitcoin OTC desk balances. According to the report, a surge in Bitcoin OTC desk holdings often leads to a decline in the digital asset’s price.
“Historically, increases in Bitcoin OTC desk balances have been associated with declines in Bitcoin prices,” CryptoQuant wrote.
These might not be unsurprising, as substantial selling from large investors like miners often leads to short-term price weakness.
At the time of writing, BTC was exchanging hands at $60,747, a minor increase in the past 24 hours.
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