Many believe that large investments will be the driving force behind Bitcoin's next bull run. The most common belief is that such investments will come with the adoption of Bitcoin ETF applications, such as those currently being developed by the SEC.
On the other hand, some believe that new projects like Bakkt can achieve the institutionalized adoption of the scale needed to begin another bull run. However, according to the latest research, institutional investment already dominates the market. Then why isn't Bitcoin worth $20,000?
Over-the-Counter Trading
Over-the-Counter (OTC) trading occurs when high net worth individuals decide to purchase cryptocurrency. Having huge capital, these individuals are considered part of any company. Looking at the volumes of over-the-counter trading, we can see that Bitcoin is currently enjoying huge interest among such large investors.
In April, daily over-the-counter trading volume ranged from $250 million to $30 billion, while exchange trading volume was approximately $15 billion, according to Bloomberg. Confirming this, Circle Financial CEO Jeremy Alley indicated that his company's over-the-counter trading volume has tripled. For comparison, trading volumes on exchangers fell by 80% compared to the maximum level.
Recall that over-the-counter trading volumes have little impact on the cryptocurrency rate.
In April, OTC trading far exceeded the volume of transactions concluded on traditional exchangers. As you might have guessed, this suggests that the cryptocurrency market received a huge amount of institutional investment in April. Why didn't these investments spark a bull run?
Because Bitcoin is still unregulated, and because there are still no ETFs or similar platforms. Institutional interest is still not widespread enough to seriously influence the price of Bitcoin. For a bull run to happen, it is necessary for major official institutions to stop hiding the fact that they are investing in cryptocurrency.
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