Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Cryptocurrencies

Bitcoin OTC Balances Decline, Raising Market Supply Questions

Source Newsbtc

Bitcoin has experienced a challenging period recently, with its price consistently declining over the past several days. After failing to maintain its position above the six-figure mark, the leading cryptocurrency now trades below $97,000.

At the time of writing, BTC trades at a price of $96,939, marking a 0.8% decline in the past day and a 10.9% decrease from its peak established in January. This downturn comes amid several underlying factors that are also related to on-chain developments.

Bitcoin OTC Balances Decline: The Implications

One notable trend has been recently highlighted by CryptoQuant contributor Darkfost, concerning the sharp decline in Bitcoin’s over-the-counter (OTC) desk balance.

Notably, institutional players—such as hedge funds, governments, and large corporations—have traditionally relied on OTC desks to acquire Bitcoin without impacting the broader market.

However, Darkfost points out that since September 2021, the OTC balance has dropped from approximately 480,000 BTC to just 146,000 BTC as of now.

Bitcoin OTC Desk balance is declining sharply

“In September 2021 the OTC desk balance was around 480k BTC and today it sits at 146k BTC left.” – By @Darkfost_Coc

Read more https://t.co/RCNlSeauDT pic.twitter.com/S0P2jLu8ta

— CryptoQuant.com (@cryptoquant_com) February 10, 2025

He notes that even after Bitcoin hit $100,000, the OTC desk balance continued to fall, reflecting steady demand. This declining balance raises questions about where these institutional buyers will source Bitcoin when the remaining OTC supply is depleted. The analyst added:

When this balance will be fully empty, all buying will have to occur directly on exchanges, which could significantly impact BTC’s price. By looking at the sell side liquidity inventory, we can observe that US exchanges currently hold almost 1M BTC. Miners could also sell their BTC via OTC, but their current balance is around 117k BTC, and not all miners rely on OTC transactions.

Miners and Hash Rate Trends

Darkfost also highlights another key market factor: miner capitulation. Mining activity, measured through indicators like the Hash Ribbons, provides valuable insight into the health of Bitcoin’s network.

The Hash Ribbons track hash rate fluctuations, and according to Darkfost, they have historically served as a reliable signal of market entry points.

While this indicator has only failed once—during the COVID-19 market shock—its current flashing suggests that miners might be capitulating. According to Darkfost, when miners struggle, they may sell off reserves, further influencing market supply and demand dynamics.

Miners are capitulating!

“This indicator consistently highlights optimal entry zones, both for mid-term positioning and long-term accumulation. Each time Hash Ribbons has flashed in the past, a Bitcoin rally has followed.” – By @Darkfost_Coc

Link https://t.co/s0mwgeKiOc pic.twitter.com/Xxuwx4HyRz

— CryptoQuant.com (@cryptoquant_com) February 11, 2025

Bitcoin (BTC) price chart on TradingView

Featured image created with DALL-E, Chart from TradingView

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Fed hike odds near 90% into Wednesday's decision — how to trade the dollar, gold and the S&P 500 A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.

Author Suzie

Sep 14, Mon

A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.

Gold falls below $4,300 as higher US yields bolster Fed rate hike bets Gold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week.

Author FXStreet

Sep 15, Tue

Gold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week.

【Daily Brief】10-year Treasury yield briefly tops 5%, S&P 500 slips to 7,602 and the dollar firms at 99.3 as the Fed's decision eve begins The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.

Author Irene Q.

Sep 15, Tue

The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.

Silver breaks $64 as precious metals rebound — can gold hold the $4,280 line into the Fed decision?Silver has climbed back above $64 an ounce for the first time this week, leading a broad rebound across precious metals hours before the Federal Reserve delivers what is expected to be its first rate hike since 2023. Spot silver was last at $64.64, up 1.49% on the day, while gold reclaimed $4,300 and platinum and palladium both advanced. The question now is whether the bounce is a genuine turn — or a pause before the Fed's dot plot decides the next move.

Author Suzie

15 hours ago

Silver has climbed back above $64 an ounce for the first time this week, leading a broad rebound across precious metals hours before the Federal Reserve delivers what is expected to be its first rate hike since 2023. Spot silver was last at $64.64, up 1.49% on the day, while gold reclaimed $4,300 and platinum and palladium both advanced. The question now is whether the bounce is a genuine turn — or a pause before the Fed's dot plot decides the next move.

Bitcoin falls below $75,000 as the CLARITY Act fails in the Senate — what the vote means for crypto The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.

Author Suzie

15 hours ago

The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.

Popular Symbols