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Bitcoin balance on OTC desks is steadily dropping to an all-time low suggesting the possibility of a major supply shock.
The crypto market sentiment has shifted from a bearish momentum, with multiple signs of a bull rally as capital inflow increases. A major bullish signal is the Over-the-Counter (OTC) Bitcoin supply metric. Recent data by Cryptoquant points to a declining OTC supply as large investors, mainly institutional whales, quietly accumulate Bitcoin.
Institutions and large-scale investors use OTC desks for privacy away from exchange scrutiny. With the supply declining, this means fewer Bitcoins are available for large purchases. With rising demand, a supply shock on the market could drive prices high, leading to a bull rally.
A rising demand against the dropping BTC supply in the market motivates holders to acquire more and minimize selling pressure in anticipation of higher gains. The OTC supply metric is not just a chart, but a major market signal for where the market could be headed.
