TABB Group, an international research company, has prepared an analytical report demonstrating that over the counter (OTC) market of bitcoin is much larger in scale than the global bitcoin exchange market.
For many years, most bitcoin analysts predicted that over time, bitcoin and other cryptocurrencies on the OTC market on a regular basis will spin billions of dollars from investors, financial institutions and miners. While exchanges like Coinbase, Binance, Huobi, OKex, UpBit, process trade operations on hundreds of millions of dollars each day, liquidity on these platforms anyway is not enough.
The lack of liquidity on the major exchanges is the main problem that can occur when handling large transactions and which draws the attention of high profile investors. Selling hundreds of millions of dollars in bitcoins over a short period of time on a public platform can lead to market collapse, especially if the exchange is not enough buy orders set at the level of elimination of large sales orders. Therefore, large traders at this stage prefer the OTC market, the bidding on which make investors-billionaires and miners. This week, the TABB Group said that bitcoin OTC market is at least two to three times more volume than stock. Given that the bitcoin exchange market handles about $4 billion a day, over the counter, according to the calculations TABB, processes more than $12 billion a day on a regular basis. Eric wall, a researcher TABB Group, said:
“OTC daily trading 1-1,5 million BTC. Strange, but this is not visible in the blockchain, the statistics of which we can only mention the meager transactions ~100 000 BTC per day. It can be concluded that not all such transactions shown in the public blockchain — so do not move themselves Bitcoins and private keys from wallet”.