Big Institutional Investors are Buying Large Amounts of Bitcoin in OTC Market
Bobby Cho, the global head of trading at Cumberland, a Chicago-based cryptocurrency trading company, has stated that a growing number of high net-worth individuals and institutional investors are accumulating Bitcoin (BTC) through the over-the-counter (OTC) market.
While some cryptocurrency market data providers estimate the daily trading volume of Bitcoin to be around $4 billion, according to ShapeShift’s Coincap.io, which filters out inflated volumes and cryptocurrency exchanges suspected of utilizing bot trading, the real volume of Bitcoin hovers at around $2.7 billion.
For large-scale investment firms, institutions, and retail traders, the global cryptocurrency market has insufficient liquidity to process multi-million dollar buy and sell orders. Major digital asset trading platforms could liquidate large orders but it may have a large impact on the short-term price movement of cryptocurrencies.