sell
Cryptocurrency OTC Reserves to Deplete by July 2026, Risks Rise
According to CryptoQuant data, the OTC Bitcoin reserves have decreased from 486,000 BTC to 115,000 BTC over 3.5 years, a reduction by a factor of 4.2. With an active outflow of approximately 276 BTC daily, these OTC reserves are projected to be depleted by July 2026. The OTC market serves as a primary channel for large investors who do not influence the regular market. As liquidity diminishes, the market becomes more sensitive to capital inflows, leading to higher volatility and greater risks of sudden price jumps.
Potential factors that could accelerate the depletion include increased demand from ETFs and corporate reserves, as well as more investments from institutional players. Conversely, emergency sales and the bankruptcy of crypto companies, which might release their holdings, could replenish OTC reserves.
Source available for registered users Sign Up Free
AI Analysis
The significant reduction in OTC Bitcoin reserves indicates a substantial shift in how large investors are managing their holdings. Since OTC trading is typically preferred by institutional investors ...
AI Recommendation
Investors should consider the implications of decreasing OTC liquidity as a potential risk factor that could lead to increased volatility. It is prudent to stay informed about institutional movements ...
Disclaimer
The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.