February proved to be the biggest trading month to date for our bitcoin OTC trading desk. Trading volume increased 211% month-over-month as sellers continued to flood the market. This influx of sellers resulted in deeper transactional price execution discounts and presented an opportunity for the limited number of buyers to price in larger discounts.
Interestingly, OTC sell pressure was inversely correlated with exchange dynamics. The OTC market had little influence over buyers’ mentalities to remain bullish trading on major exchanges as the price of bitcoin rose approximately 16% in February.
itBit Bitcoin OTC Market Data Summary for February 2016
|Total Bitcoin Volume Traded||66,230 XBT|
|Total USD Amount Traded||$26.4 Million|
|Average Daily Trading Volume||3,153 XBT|
|Month-over-Month Trading Volume Growth||211%|
In addition to total trading volume, we saw significant month-over-month growth across a number of key OTC trading metrics:
- Unique Number of Transactions: +54%
- Average Daily Trading Volume*: +127%
- Average Bitcoin Volume Per Trade: +102%
Other February Highlights from the OTC Desk
- Transactions experienced a 105% increase in average execution discounts (to exchange spot prices) from -34bps to -70bps.
- US trading declined 7% but international trading activity picked up. Asia trading volume rose 220% month-over-month.
- Remittance client volumes doubled month-over month while retail client volumes continued to decline.
- Welcomed a new OTC client from Argentina (please see heat map below) bringing the total number of countries we service to 18.
New clients receive $50 in bitcoin upon completing their first OTC trade with us!
Director of Trading, itBit
*OTC trading hours generally between 8AM EST and 5PM EST
Please note: itBit never double counts OTC volume or USD dollar amount traded.