Behind the Numbers: How the OTC Market is Rewriting Bitcoin Strategy in 2024
#Bitcoin #SmartMoney
🎙️ Join Chris J Snook @DigitalSenseXYZ in BlockCity lounge where he will dive into what’s happening with Bitcoin Over-The-Counter and the Smart Money.
Special Guest: Richard @JCryptoRider (Biz Dev @LunarAssets) and James Godfrey from Secure Digital Markets which is Canada's leading digital asset brokerage offering OTC trading, liquidity, lending and settlements.
📅 RSVP here
When everyone else was chasing the hype, Over-The-Counter (OTC) market quietly secured billions.
It’s 2024, and Bitcoin’s Over-The-Counter (OTC) market is rewriting the rules of crypto strategy. On the surface, a 52% drop in daily inflows might seem like trouble. But behind the scenes, the OTC desks and "smart money" players are making counterintuitive moves that few could predict.
The Context
The crypto world has been buzzing all year with Bitcoin ETF approvals and surging institutional adoption. Yet, as retail investors rushed into public exchanges, OTC desks saw their daily inflows plummet to yearly lows in October 2024—around 90,000 BTC.
Conventional wisdom might say, "This is a problem." But seasoned players saw an opportunity.
The Bold Strategy
While inflows dropped, OTC desks were quietly amassing Bitcoin reserves. By October, their holdings ballooned to 416,000 BTC (valued at $30 billion)—more than double the average from earlier in the year.
Here’s what drove this unconventional approach:
Institutional Influx: A 95% year-over-year spike in OTC trading volumes showed clear interest from institutional investors.
Spot ETF Momentum: Smart Money began rotating profits into Bitcoin, anticipating broader adoption from ETFs and family offices.
Flight to Safety: Reduced exposure to riskier altcoins funneled demand for Bitcoin as a long-term store of value.
The Results
Supply Crunch: Declining inflows paired with growing reserves have set the stage for a potential new all-time high.
Strategic Advantage: OTC desks are perfectly positioned to meet surging institutional demand without affecting public exchange liquidity.
Market Confidence: The shift in Smart Money behavior reinforces Bitcoin’s status as the “flight-to-safety” asset in a turbulent market.
The Takeaway
In markets, bold moves often look irrational—until they aren’t. The OTC desks accumulation strategy highlights a timeless lesson:
Sometimes, the best opportunities come not from following trends, but from quietly positioning yourself for what’s next.
Join us in the lounge to discuss how the OTC Market is Rewriting Bitcoin Strategy in 2024.