The OTC Counters Are Quickly Running Out of Bitcoins: Caitlin
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Bitcoin spot ETFs have drastically reduced the supply of Bitcoin available through over-the-counter (OTC) desks, confirmed by Custodia Bank CEO Caitlin Long and visible in blockchain data.
The over-the-counter supply of Bitcoin is running out.
I spent time in New York the last two days and it was clear why Bitcoin prices skyrocketed last week: there was almost no BTC for sale at the major OTC desks,” said Long X .
Bitcoin is now trading at over $62,000 per coin after a massive rally in February–it is the largest monthly green candle ever recorded
These gains were largely driven by the seismic inflows in the newly introduced Bitcoin Spot driven exchange-traded funds of the last 50 days.
Bitcoin ETF market makers purchase new BTC “over-the-counter” or “OTC,” meaning they make private purchases from large BTC holders rather than collecting coins on the open markets. This prevents short-term blips, but suppliers will eventually have to return to public exchanges to receive new Bitcoin, ultimately driving up Bitcoin’s value. Long added that a reliable source told him: “On Wednesday, there were only about 40 BTC available at any price at one point.” Glassnode data shows that the amount of Bitcoin on OTC desks is rapidly decreasing and now has reached a value close to zero. Some analysts believe that on-chain data for OTC Bitcoin is not the most reliable. Will Clemente, co-founder of Reflexivity Research and an are.
Impact of Bitcoin ETFs on Price
Bitcoin ETFs recorded daily inflows of over $500 million from February 26 to 28, while Bitcoin’s value rose from $52,000 to $64,000.
The following day, Bitcoin remained flat at $62,000, while ETFs saw a modest inflow of $92 million.
