Reports Show Over the Counter (OTC) Bitcoin Trading Volumes Dwarf Public Exchanges

    Where Do the Biggest Investors in the Crypto Industry Trade? Take a Look At the Over-The-Counter Market

    An international research company called TABB Group recently created an analytical report that exposes some interesting truths of the cryptocurrency industry. The most interesting of this information is that the over-the-counter market for Bitcoin actually surpasses the volume of the global bitcoin exchange market.

    Most Bitcoin analysts, for quiet some time, predicted that the OTC market would be responsible for trading billions of dollars, which the primary traders being investors, institutions, and miners. There are multiple crypto platforms that handle hundreds of millions of dollars daily in trading, like Coinbase, OKEx, Huobi, and Binance. However, there just are not enough liquid assets to their name to be able to handle even one or two multi-billion-dollar orders to sell.

    Without this liquidity, major exchanges are at risk for losing out on major trading opportunities with high-profile investors. In fact, making the move to sell this much in tokens in such a small amount of time has the potential to bring the whole market crumbling down. The biggest risk comes if the industry lacks the number of buy orders that they need to fully liquidize the massive sell orders.

    As a result, many of the higher spending investors and institutions focus on the use of OTC market for their transactions, giving them large portions or Bitcoin, Ether, and similar tokens to work with.

    In the report this week with TABB Group, the organization states that the OTC market that handles Bitcoin exceeds the exchange market twice or three times over. If this statement is based in fact, and the exchange market truly handles $4 billion daily, then it would be right to assume that the OTC market takes care of approximately $12 billion each day on average.

    One researcher who read through this report, Eric Wall, commented, “Just read an estimate from the TABB Group (in a $5,000 report) that OTC crypto markets exceed exchange volumes by 2-3x. That would mean 1 to 1.5 million BTC is traded OTC daily. Strange it’s not visible on the blockchain, which shows a meager 100,000 a day.” A senior fintech analyst with TABB Group, Monica Summerville, defended the $12 billion figure by saying that their information was based on both evaluation of the market and interviews.

    Summerville continued, saying, “Our reports are based on interviews and with participants in markets, cover more than BTC and keep in mind that not all transactions show up on public blockchains as many venues omnibus accounts so only net changes to their positions will be written to public blockchain.”

    The Bottom Line – What Does It Mean?

    Without the same foundation of the rest of the financial sector, cryptocurrency’s movement on the exchange has an unpredictable future from minute to minute. One of the scariest parts of investing on this kind of platform is the rate of volatility. As sturdy as Bitcoin is, it still experiences wiggle room of up to 10% either in profit or loss daily. If the exchange market is such a small piece of the cryptocurrency pie, it becomes much more challenging to figure out what makes the market move. Without some sort of understanding of what causes the market to change, new exchanges and even experienced investors will be hard-pressed to make any money.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Bitcoin Exchange Guide News Team
    B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Ethereum (ETH) Price Analysis (February 26)

    • Price now falling towards the support level. • Sellers working hard to invalidate the bullish pattern. ETH/USD Medium-term Trend: Bullish • Resistance levels : $260, $270,...

    Chainlink To Launch Its First Oracles Outside Ethereum on Polkadot Blockchain

    Chainlink’s oracles have become a popular solution for Ethereum based DeFi’s as blockchain innovators seek to integrate their smart contracts with external data for...

    New Zealand Aims To Abolish Cryptocurrency Sales Tax While Income Tax Would Remain

    Quick Read: The New Zealand Inland Revenue Department is calling for a revision of current Goods and Services Tax laws that are unfavorable to...

    Is A Fed-Controlled Digital Dollar A ‘Win' For the Public; Will it Pave Way For Faster Payments?

    A digital dollar means Fed will be “free to impose negative nominal interest rates on all dollar-holders,” and privacy concerns - Lawrence H....

    Revolut Crypto Investing App Valuated at $5.5 Billion After New $500M Funding Round

    The UK-based digital bank Revolut is now valued at $5.5 billion, after raising $500 million in its latest series D funding round. Raising a...

    Bitcoin Becoming A “Currency of Choice” Will Push BTC Price Up 2,500% – Tim Draper

    Bitcoin correction may end up being more than that but we're in for an interesting ride Tim Draper still holding to his prediction...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.