Mike Smith
Feb 10
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The situation in the Bitcoin market is becoming increasingly tense: OTC reserves of the cryptocurrency are rapidly depleting, which could lead to a significant increase in its value. According to analysts, there are only 140,000 BTC left on OTC platforms, and if institutional investors continue their current pace of purchases, the supply in the OTC market could be completely exhausted.
Major buyers, such as ETF-oriented funds and companies actively accumulating Bitcoin, prefer transactions outside of public exchanges. This allows them to acquire the asset without significantly affecting its market price, which is especially important for large volumes. However, this resource is not unlimited, and analysts warn that three large-scale purchases by major players can completely deplete OTC reserves.
The consequences of this can be twofold. One scenario involves a sharp increase in demand on exchanges, which will lead to an increase in the price of BTC. An alternative scenario is the spread of FUD among market participants, which can cause short-term sell-offs and temporary volatility. Institutional investors with large capital often use such strategies to influence the rate and subsequent profitable purchases.
Another factor is the possible intervention of regulators. Recently, government agencies have been paying increasing attention to cryptocurrencies, and the unpredictability of their decisions can affect the market movement. Nevertheless, the long-term prospects for Bitcoin remain positive: shrinking supply, growing demand from institutional players, and the global trend for digital assets create conditions for sustainable growth.
Retail investors should remain vigilant in the current situation. The market can show both sharp surges and deep corrections, and understanding the mechanisms behind these movements becomes a key factor in successful investing.
