Published
5 years ago on
October 02, 2018
“Bloomberg reports that in April, daily OTC trades varied anywhere between $250 million and $30 billion, while exchanges only handled about $15 billion daily in that time by contrast. Corroborating this, Circle Financial CEO Jeremy Allaire confirmed that his company is seeing a triple-digit increase in OTC volumes. By contrast, according to data from CryptoCompare, exchange trade volumes are down 80 percent from their peaks at the same time as the increasing popularity of OTC.â€Just within this timeframe, OTC trades far outweigh the trades handled by traditional exchanges by volume. This, as you may deduce does suggest that in April along, a huge amount of institutional investment took place. So, back to the big question, why hasn’t this inspired a Bitcoin rally? Because Bitcoin is still unregulated and because we don’t have a working ETF or something similar, institutional interest has no doubt been limited to a select few institutions. Institutional interest is not widespread enough to actually have a huge impact on the value of Bitcoin. Yes, these findings do prove that high value investors are buying in, but until we get large institutions buying Bitcoin and then publicising the fact they are buying it, the markets will remain steady. For an institutional investment based bull run to take place, we need big institutions to go on and advertise the fact that they are investing. After this, things are sure to change. References Cryptoglobe
