OTC trading volume is several times higher compared to the previous bull market! OTC platforms state: Large institutions are driving the cryptocurrency market.

The price of Bitcoin continues to rise, with many institutional-grade over-the-counter trading platforms indicating that new and larger institutional participants are driving the cryptocurrency (especially Bitcoin) trading market.

OTC Trading Volume Surges 6 Times Higher Than 2017

During the bull market of the cryptocurrency market in 2017, when Bitcoin surged to nearly $20,000, institutional-grade over-the-counter (OTC) trading platforms like Genesis Global Trading and B2C2 saw trading volumes in the hundreds of millions. Recently, Bitcoin has once again reached those price levels, with reported trading volumes on trading platforms even higher than the previous cycle.

According to data from Genesis Global Trading, this year's OTC trading volume is over six times higher than the peak in 2017. Since 2017, more institutions have entered the OTC trading market, with Genesis stating that this is a key driver behind the current Bitcoin rally. Genesis CEO Michael Moro stated:

“Genesis spot trading platform has seen many institutions continuing to buy BTC spot and call options, as the Thanksgiving morning sell-offs provided a good opportunity to establish long positions.”

Last week, Genesis hit a milestone of $600 million in spot trading volume. Genesis claims that the growth has been driven by new institutions ranging from family offices to passive funds.

Major Players Driving the Market

Another digital asset management firm, Galaxy Digital, has also observed a similar trend, with the company having an OTC trading business. Galaxy Digital, which was not very active during the 2017 bull market, has also seen significant growth in performance this year due to the trend of institutional participation in the market.

Timothy Plakas, head of trading at Galaxy Digital, stated in an interview:

“Based on the capital flows we see on our platform, it appears that new and larger institutional participants are driving cryptocurrency (especially Bitcoin) trading markets.”

More Buyers Than Sellers

After a pullback, Bitcoin has once again surpassed the $19,000 level. Currently, both Genesis and Galaxy are preparing for further upward movement. Timothy Plakas commented:

“Even during the Black Friday price dip, we did not see panic selling from counterparties. Typically, after a significant uptrend, there will be a pullback, but we believe the overall risk should occur above current price levels.”