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Author: Admin | 2025-04-28
PARIS, FRANCE - FEBRUARY 06: In this photo illustration, a visual representation of the digital ... [+] Cryptocurrency, Bitcoin is displayed in front of the Bitcoin course's graph of Coinbase cryptocurrency exchange website on February 6, 2018 in Paris, France. The cryptocurrency market has been in trouble since the beginning of the year, because of the fear of a crackdown on regulators and the decline in the volume of trade in Asia. Bitcoin collapses and falls below US Dollars 8,000, half its peak in December, when it exceeded US dollars 19,000 in November 2017. (Photo by Chesnot/Getty Images)Getty ImagesBitcoin’s price is always often speculated on. One underrated mechanism of the price action are the over-the-counter (”OTC”) trading desks that deal with large volumes of Bitcoin buys and sells off-exchange and with large private clients. This is especially the case in Asia, where large companies handle OTC trading across financial hubs like Hong Kong and Singapore. Public spectators don’t have access into what really happens - the system is relatively opaque. And yet the trends of this trading behind the scenes plays an essential role in Bitcoin’s price. The OTC trading that happens around the world represent hidden data and factors.Activity is moving to Bitcoin and Ethereum, and the stablecoins, while altcoin token volume is shrinking, with the US Bitcoin Spot ETF approval driving a lot of momentumThe CEO of HashKey OTC, the OTC trading arm of HashKey Group is Liang Li - though he prefers to go by Liang. Liang observes that he’s seen more interest in Bitcoin and Ethereum from traditional investors with the launch of spot ETF products related to them. For smaller tokens, it’s “really not picking up very much.” - tracking market performance overall. The ETF approval has drawn traditional eyes to Bitcoin and Ethereum trading - but there’s been a flight to safety among some OTC users as they look to shrink their exposure to more risky altcoins. At Netcoins, a Canadian company with enterprise and OTC options, there was also “a large increase in trading volume from Q4 ‘23 from US-driven momentum and a significant increase trending around the Bitcoin ETF approvals.”USDT is trading at a premium in Asia, while USDC is trading at a discountDuring price action that saw Bitcoin’s price descend to around the $50,000 range from highs of $73,000, Liang from HashKey also observed that demand for Tether was very strong, with it trading at a premium compared to the US dollar. This might be explained by, among other things, people refusing to cash out into a domestic currency and trying to wait until the market for Bitcoin to stabilize. On the other hand, USDC seldom trades at a premium - and at some points, like with the failure of Silicon Valley Bank, it actually trades at a loss. Netcoins observed the same thing in North America around the same time, though in North America, stablecoins tend to trend closely to the exact value in dollars - and stablecoins are notably
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