Nelson Minier Of Kraken Confirms 20X Growth In OTC Desk Trades Since Last Year
Nelson Minier, the head of OTC Sales & Trading at Kraken recently disclosed that they are doing 20 times more trade than what they used to do in 2018 at this week’s episode of The Scoop.
Regarding the future of BTC price, Minier said:
“I don’t see demand for this asset going down. But I do know that supply is gonna get cut in half, sometime 2019. And I think another thing I know about Bitcoin is that the higher price is the best marketing tool we have.”
In the crypto industry, OTC desks have gained popularity among those who are willing to sell large amounts of coins, like miners or early crypto investors. However, there are plenty of investors willing to buy crypto without resorting to major exchanges, especially the big players.
Earlier this year, we reported that in just a month since the acquisition by Kraken, Crypto Facilities had processed almost $1 billion in crypto futures across their products. While comparing the numbers from a workweek set before the acquisition to one set after, the firm has found a 565% increase in trade volume.
Kraken is not an isolated incident, the entire crypto ecosystem is facing similar trends. The trading volumes are skyrocketing too, which means that investors join the new bull’s wave on the market. Bitcoin trading volumes on crypto exchanges hit $725 billion, which is nearly four times as large as an average figure in the first quarter of 2019. Furthermore, it is almost twice as much as during the previous peaks in December 2017 and January 2018.
Even OTC trading volume is booming. Whales use OTC markets to their advantage, buying large quantities of bitcoin without causing the price to immediately rise. Subsequently, the whales could then resurface on exchanges to sell some bitcoin to keep prices low. Hence it is not surprising that OTC services have grown in popularity in recent months as BTC price has dropped to yearly lows.
Just last month Kraken had hired the ex-managing director of over-the-counter (OTC) trading platform B2C2 to head of development at its new Bitcoin futures operation.