Investigative Report: Over-the-Counter Bitcoin Transactions Skyrocket, While Kraken Exchange Witnesses a 220% Surge in Trading Volume

The trade of digital currencies, such as Bitcoin (BTC), through over-the-counter (OTC) methods is on the rise.

On the 25th, local time, as reported by The Block, Tim Ogilvie, who oversees the institutional segment at Kraken, a crypto exchange, remarked that “Our OTC desk at Kraken has seen a 220% leap in trade volume year-over-year,” and he observed that “this trend mirrors the growth across various exchanges.” He emphasized that “the OTC market for cryptos is indeed undergoing a dramatic surge.”

Jake Ostrovski, an OTC trader at Wintermute, a market maker for cryptocurrencies, analyzed the market dynamics, noting, “The crypto OTC market remained subdued until the middle of the year, but activity picked up as crypto prices spiked in the lead-up to the election, prompting investors to take positions.” He recognized that for some, the election of a crypto-friendly individual like President-elect Donald Trump was a signal to commence trading activities.

Market analysts believe that the demand for cryptocurrencies, including Bitcoin and Ethereum, will likely persist for the foreseeable future. BitGo’s GoNetwork’s lead, Brett Reeves, commented, “There’s a notable difference in market stability compared to prior years,” he said. “The launch of Bitcoin-based ETFs has reinforced this trend, which is expected to benefit not just the OTC market but the whole crypto ecosystem.”