The trading desks at Wall Street are still showing a hope about the cryptocurrency market fluctuations. Purchasing pressure is raising at a majority of the OTC desks within an entire crypto space. Many of the traders are tired of bullish sentiment mimics that recent price fluctuation shows over spot crypto exchange market.
However, Cumberland recently tweets about the imbalance running between buyers and sellers is continually spiking by 60% from last week. Moreover, the company says that they are not the only one affected by this scenario.
Historically, our OTC trading is relatively balanced between buyers and sellers. Over the last week, our OTC buys/sell ratio (by notional value) has increased by approximately 60% towards counterparties buying.
The CEO at Genesis Trading, Michael Moro states that his company is also facing more by orders flood from the closure of 2018. During the end of this year, sizable crypto investors have sold relatively for tax purposes. He also adds that he will echo the sentiments of Cumberland via an email.
As the year turned, the selling pressure from such activities has subsided, and we have seen more buy-side interest pick up.
Meanwhile, daily OTC desks are overseeing millions of dollars institutional crypto trading. However, sometimes, OTC trading paints a relatively better picture in comparison to the recent crypto market. Whereas another institutional conception has worse experience executing larger trades.
Monica Summerville is a Fintech research director at Tabb Group, a capital markets consultancy. According to Summerville:
The big deals have to go OTC. A lot of the exchanges limit the order size, so you have to break up your orders, and that’s just fatal.
On the other hand, Galaxy Digital specifies that the tide seems to be changing. The company notes that trading desk observes flexible tax drive trading activity at the closure of 2018 from asset manager and treasury accounts.
In early January, much of the flow reversed to buy back previously sold assets. Additionally, we have seen increased buying from Asia and EMEA traders, while some active sellers took a pause to start the year.
This story sounds somewhat similar to Paxos- New York operating platform. The company works on a OTC desk along with exchange. Moreover, it reports some bullish trading activity experiencing in January. The head of OTC trading at Paxos, Paul Ciavardini shares:
The nature of most of our trading flow so far this year has been buy tickets from emerging market traders.