How do over-the-counter (OTC) Bitcoin trades affect the publicly reported price?

How do over-the-counter (OTC) Bitcoin trades affect the publicly reported price?

Blog Article

Over-the-counter (OTC) Bitcoin trades can have a significant but often unseen impact on the publicly reported bitcoin price today. Unlike exchange trades, OTC transactions occur directly between two parties, usually facilitated by a broker, and are typically used for very large volumes that could otherwise cause significant price slippage on public exchanges. Because these trades are not immediately reflected on open order books, they can create a "hidden" demand or supply. For instance, if a large institution is accumulating Bitcoin through OTC desks, this demand isn't visible to the broader market, yet it subtly tightens available supply. When this accumulated demand eventually translates into exchange buying, or when the news of large OTC purchases becomes public, it can lead to subsequent price movements. OTC trading provides liquidity for large players without causing immediate volatility, but its underlying flow can dictate broader trends.