 ▲ Bitcoin (BTC) |
Balances held by Bitcoin (BTC) over-the-counter (OTC) desks have declined sharply. As selling pressure from large investors appears to be easing and the possibility of fresh institutional inflows emerges, expectations for a strong price rebound are growing in the market.
According to crypto-focused outlet NewsBTC on February 23 (local time), total balances across Bitcoin OTC desks have drawn a steep downward curve, signaling a potential reversal in market trends. CoinNiel, an analyst at on-chain data platform CryptoQuant, noted that large amounts of Bitcoin have recently been flowing out of OTC desks, calling it “a strong signal that institutional buying demand is surging or that major holders are no longer willing to sell.”
A decline in OTC desk balances typically occurs when institutions purchase supply directly and transfer it to private wallets. Over the past two weeks, the Bitcoin market has remained under selling pressure, marked by fear-driven declines. However, as the price stabilized around the $68,000 level, investor behavior began to shift. CoinNiel pointed out that shrinking balances at OTC desks, which previously accumulated Bitcoin intended for sale, suggest that market sentiment is turning from bearish to bullish.
This shift in on-chain data supports the hypothesis that Bitcoin could soon experience a significant upward move. If institutional accumulation is confirmed, it could serve as a powerful catalyst for price growth, while a reduction in selling pressure alone may positively impact short-term price recovery. Nevertheless, the analyst cautioned that further confirmation is needed to determine the exact cause of these dynamic flows and advised investors to approach the market carefully.
Bitcoin is currently undergoing a correction, having declined about 2.81% over the past seven days, but the accelerating outflow from OTC desks has emerged as a new variable drawing market attention. If institutions are aggressively accumulating supply off-exchange, it could eventually lead to a shortage of exchange-traded supply and spark a sharp price surge. Experts suggest that OTC balance trends will serve as a key indicator in determining Bitcoin’s future direction.
After a prolonged downturn, the digital asset market appears to be standing at another inflection point. As institutional investors quietly accumulate positions behind the scenes, global attention is now focused on changes in on-chain data to determine whether Bitcoin can reclaim the $70,000 level and bring the downtrend to an end.
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