-Bitcoin news, price, information & analysis Over the past 48 hours, the Bitcoin price has dropped by more than eight percent from $7,500 to $6,890, despite having seen some of the most positive developments in the history of the crypto market. Bitcoin 1-day price chart, provided by Cryptowat.ch The vast majority of short-term traders and casual investors utilize cryptocurrency exchanges such as Coinbase, Bitfinex, Binance, OKEx, Huobi, and UPbit to buy and sell major digital assets.
Developments in the cryptocurrency sector pertaining to merchant adoption, institutionalization of cryptocurrencies, and technical breakthroughs can have a significant impact on the cryptocurrency exchange market. However, according to Tabb Group’s report, the over-the-counter (OTC) market of Bitcoin is incomparably larger than its exchange market, by at least two to three-fold.
Hence, if the cryptocurrency exchange market only accounts for 25 percent of the global market’s liquidity or volume, it is more likely that large-scale retail traders in the OTC market are manipulating the price of Bitcoin, rather than individual investors in the public exchange market. If the OTC market’s dominance is accurately measured, then it also opens up an argument about the causation of price movements in the Bitcoin market.
Specifically, it is difficult to justify the short-term movements of Bitcoin and other digital assets based on developments in the cryptocurrency sector because news can only have an impact on a market that moves swiftly and can reflect the result of timely events, such as the approval of an ETF or the integration of cryptocurrencies by a large retailer. The OTC market, due to the sheer size of its orders, move slowly, often with the involvement of agents and brokers.
Billionaire investors and institutions that intend to purchase at least several thousand BTC rely on the OTC market to process large orders, because doing so in the cryptocurrency exchange market could lead the price of Bitcoin to experience intensified movements on both the upside and downside. If a large order in the OTC market is liquidated, it takes the public cryptocurrency exchange market a few days to reflect. Read more from newsbtc.com…
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