OTC Bitcoin Wallets Swell Amid Low Volatility: 57,000 BTC Added In A Month

Over
the
last
month,
the
price
of
Bitcoin
has
been
subject
to
much
turbulence,
culminating
in
a
total
loss
of
3.09%
according
to
data
from
CoinMarketCap.
Notably,
despite
intermittent
waves
of
a
price
rally,
The
crypto
market
leader
failed
to
reclaim
the
$65,000
price
zone
in
all
of
August.
However,
amidst
this
bearish
market,
institutional
investors
have
taken
the
opportunity
to
strengthen
their
position
in
the
Bitcoin
market.

Bitcoin
OTC
Reserves
Surge
At
Record
Since
2021

In
a
Quicktake
post
on
CryptoQuant,
an
analyst
with
the
username
caueconomy
reported
an
observation
on
the
purchasing
behavior
of
Bitcoin
institutional
investors.
By
monitoring
transactions
of
Bitcoin’s
over-the-counter
(OTC)
addresses,
this
analyst
conferred
that
these
parties
have
been
rapidly
increasing
their
holdings
in
the
past
few
weeks. 

Institutional
investors
often
prefer
OTC
trading
over
exchanges
for
large
transactions
as
it
allows
them
to
buy
or
sell
large
quantities
of
cryptocurrencies
without
moving
the
market
price
significantly.
According
to
caueconomy,
these
investors
have
now
acquired
57,000
BTC,
valued
at
$3.65
billion,
in
the
last
30
days,
representing
a
purchase
scale
last
seen
in
2021.

The
analyst
notes
that
this
buying
activity
is
unusual
as
high
levels
of
institutional
OTC
trading
usually
occur
during
periods
of
high
volatility
in
contrast
to
low
price
volatility
that
has
been
largely
present
in
the
BTC
market
over
the
last
few
weeks.

However,
caueconomy
postulates
that
this
large-scale
acquisition
may
be
targeted
at
planned
token
offload
in
cases
of
“adverse”
market
reaction.
In
contrast,
whales
and
institutional
investors’
purchase
of
large
amounts
of
an
asset
especially
during
market
lows
represents
a
bullish
signal
of
confidence
in
future
profitability.

Most
recently,
the
premier
cryptocurrency
experienced
a
price
boost
on
Friday,
after
US
Federal
Reserve
Chairman
Jerome
Powell
affirmed
an
incoming
interest
rate
cuts
over
the
next
few
months.
Bitcoin
rose
by
4.84%
to
reach
a
peak
of
$64,879,
just
shy
of
the
prominent
$65,000
resistance
zone. 

Commenting
on
this
development,
Uto
Shinohara,
financial
expert
and
managing
director
of
an
asset
investment
company
Mesirow,
predicted
a
rate
cut
of
30bps
in
September
and
a
total
rate
cut
of
95
to
100
bps
by
the
end
of
2024. 
If
such
predictions
prove
true,
Bitcoin
and
other
cryptocurrencies
are
expected
to
surge
in
demand
in
the
coming
months
which
could
translate
into
significant
profits
for
institutional
investors.

BTC
Price
Overview 

According
to
data
from
CoinMarketCap,
Bitcoin
trades
at
$63,905
with
a
price
gain
of
5.38%
in
the
last
24
hours.
In
tandem,
the
asset’s
daily
trading
volume
is
up
by
64.53%
and
valued
at
$42.94
billion. 

Featured
image
from
Coinformania,
chart
from
Tradingview