- OTC cryptocurrency trading volumes are up 220% year on year.
- The US election leads to increased risk-taking and activity.
As a seasoned researcher who has witnessed the evolution of the cryptocurrency market over the past decade, I must say that this recent surge in OTC trading volumes is nothing short of phenomenal. The 220% year-on-year growth is reminiscent of the exponential growth we saw during the early days of Bitcoin, and it’s fascinating to see similar dynamics at play now.
The significant surge in trading of cryptocurrencies on over-the-counter platforms like Kraken is experiencing a 220% increase year-on-year, mirroring the trading volumes of the peak in 2021. This trend, driven by political events and rising market interest, indicates that investors are adopting strategies to diversify their investments onto alternative exchanges.
Tim Ogilvie, Kraken’s institutional sales leader, stated that the Over-the-Counter (OTC) market was experiencing exceptional growth. While prices may have risen, he noted that trading volumes significantly increased as well. The upcoming US elections might contribute to this trend since traders tend to reposition themselves before elections, causing the market to adapt accordingly.
US Election Spurs OTC Trading Boom
Wintermute’s over-the-counter (OTC) trader, Jake Ostrovskis, stated that trading was subdued in the heart of the year, but picked up pace significantly towards the end, driven by election results. Clients who had been holding back decided to join and trade, seeing the political situation as a signal to act. Additionally, GSR reported increased diversity in trading activity as investors sought opportunities outside of the Bitcoin and Ethereum investment pools.
In January 2024, BitGo, a cryptocurrency custodian, secretly introduced an over-the-counter trading desk. According to Brett Reeves, Chief of the Go Network at BitGo, approximately two-thirds of their recent business activity has been post-election related. He highlighted that the US market is particularly active and expressed growing interest in trading Ethereum, Bitcoin, and newer assets like Solana.
Given the ongoing volatility in the cryptocurrency market, Over-the-Counter (OTC) trading offers a more stable alternative. Experts and key figures in the industry anticipate that the demand for OTC trades will remain robust as we move into the new year, driven by both institutional interest and a desire for risk diversification.
The impact of the election period on trading activities serves as a reminder yet again of the unpredictable nature of the relationship between politics and the crypto market, with institutional investors shaping the digital currency world in extraordinary manners.
Read More
- “I’m a little irritated by him.” George Clooney criticized Quentin Tarantino after allegedly being insulted by him
- South Korea Delays Corporate Crypto Account Decision Amid Regulatory Overhaul
- Destiny 2: When Subclass Boredom Strikes – A Colorful Cry for Help
- What was the biggest anime of 2024? The popularity of some titles and lack of interest in others may surprise you
- Sonic 3 Just Did An Extremely Rare Thing At The Box Office
- ‘We Will Rebuild L.A.’: Rams Players Celebrate First Responders at Relocated NFL Wild Card Game Against Minnesota Vikings
- An American Guide to Robbie Williams
- George Folsey Jr., Editor and Producer on John Landis Movies, Dies at 84
- Michael Schlesinger, Repertory Executive and Classic Film Enthusiast, Dies at 74
- Deep Rock Galactic: The Synergy of Drillers and Scouts – Can They Cover Each Other’s Backs?
2024-12-27 15:45