On-chain data: major investors are getting back into bitcoin

Decentralized or not, large investors generally rule bitcoin (BTC). An important place where bitcoin is traded, but which you often hear little about About The Counter platforms, or simply ‘OTC desks’. On-chain data indicates that there hasn’t been that much bitcoin on the addresses of these platforms in seven months.

Institutes active in crypto again

OTC trading platforms are widely used by wealthy people and large institutions, because it entails extra low trading costs. Also, the tokens sold here do not necessarily end up on the open market. As a result, sellers do not have to worry about manipulating the market.

Analyst James van Straten writes that these companies have not had as much BTC on their balance sheets in seven months as they do now. At the moment they have more than 5,600 BTC. That’s almost twice the amount they had at the bottom in Q4 2022. The data comes from Glassnode, which includes three of these companies.

According to van Straten, the information is positive, it indicates that large institutes are returning to the market and that liquidity slowly returns. However, Glassnode does not tell us whether the bitcoins in these addresses are available for sale or not.

It could be that institutions bought the tokens. That could mean that they can also be sold quickly. It could also be that they are available for sale, and that these companies may choose to sell them to a regular crypto exchange. In any case, it indicates that institutions are active in crypto again.

Stablecoins are used for bitcoin again

In a second analysis, he writes that traders are putting their stablecoins back into bitcoin. According to the Glassnode data he cites, that trend appears to have started since we found the bottom in December. When the bottom was reached, the sales volume almost instantly turned into buying volume.

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