Bitcoin OTC Desks Running Dry: Implications for the Market

Dwindling Bitcoin Supply on OTC Desks

Caitlin Long, CEO of Custodia Bank, reports that the availability of Bitcoin on Over-the-Counter (OTC) desks has plummeted, with only around 40 BTC available for sale at one point. This trend is corroborated by other industry figures, indicating a broader shift in the market.

Impact on Bitcoin Price

The scarcity of Bitcoin on OTC desks suggests a potential supply shock, driven by increased demand from institutional investors and corporations. This could lead to a shift in price discovery from OTC desks to public exchanges, where the true market price will be determined more transparently.

Implications for Large Investors

Large investors and ETFs that traditionally purchased Bitcoin at a discount through OTC desks may no longer have this option. This could further drive demand on public exchanges, potentially leading to significant price movements.

Analyst Predictions

Analysts predict that this situation could lead to substantial price increases before the upcoming halving event in April. They speculate that the self-correcting nature of the market will push prices higher as people sell and OTC desks replenish their supply.


The depletion of Bitcoin supply on OTC desks marks a significant moment for the market. With the halving event approaching and institutional interest soaring, the stage is set for potentially unprecedented movements in the Bitcoin market.