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Cryptopolitan 2024-12-25 21:00:47

Crypto OTC trading volumes rise after US election

According to leading cryptocurrency trading companies, the election result has been a major driver of the recent sharp rise in over-the-counter (OTC) trading volumes. The head of Kraken Institutional, Tim Ogilvie, said that while prices are up, the volume is far higher. He confirmed that Kraken’s over-the-counter (OTC) trading volumes have increased by 220% in the past year, and other cryptocurrency trading companies have experienced a comparable rise. According to Brett Reeves of BitGo, two-thirds of the exchange’s recent volumes have come in the last three months as a result of the election’s outcome. In mid-2024, the OTC market had low trading volumes, but that changed as the election approached and traders wanted to capitalize on the results. OTC traders explore other liquid cryptocurrencies Desks have noticed that traders are becoming more open to exploring assets beyond well-known ones like Bitcoin (BTC) and Ethereum (ETH). This is because the rise in demand for Bitcoin (BTC) has caused OTC desk inventory levels to drop by the highest monthly volume in 2024. This year, the monthly inventory of Bitcoin OTC desks has been reduced by 26,000 BTC , and since November 20, it has also been reduced by another 40,000 BTC. Alternative coins like Solana (SOL), Binance Coin (BNB), Tron (TRX), and Aave (AAVE) have become well-known assets because of their high liquidity. Institutional players seek liquid markets, which allows them to execute larger trades efficiently, according to Ogilvie. Analysts expect over-the-counter desks will continue to have high demand for Bitcoin (BTC) and Ethereum (ETH) while traders investigate the potential expansion in the derivatives markets. They emphasized how big institutions are increasingly using options as a hedging tool. Options linked to Bitcoin ETFs have opened the door for cross-collateralized, affordable products, bringing cryptocurrency closer to conventional financial models. Analysts anticipate that more ETFs, possibly with Solana (SOL) or XRP included, will provide market stability and encourage adoption. The growth of these financial products is anticipated to draw in new funding sources, changing the over-the-counter and overall cryptocurrency environment. Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap

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