Our bitcoin OTC data from January shows several interesting macro trends related to market participant positioning. Trades made in early-January saw buyers place long-term foundational bets on the price of bitcoin. These trades were executed with positive December price movement and the Q4 bull run in mind.
In mid-January, price momentum slowed and sellers began to flood the market. This allowed the limited number of buyers to demand larger discounts to exchange spot prices in the second half of January. Over this time, sellers executed trades at an average discount to market of nearly 34bps, paling in comparison to the 10bps average discount during the first half of January (see spot price vs. executions chart below). Overall, this represents a 232% change in market dynamics as buyers exercised control and clearly dictated execution prices.
itBit Bitcoin OTC Market Data Summary for January 2016
|Total Bitcoin Volume Traded||21,287 XBT|
|Total USD Amount Traded||$8.6 Million|
|Average Daily Trading Volume||1,064 XBT|
|Month-over-Month Trading Volume Growth||-8.6%|
January Highlights from the itBit OTC Desk
- Remittance client volume rose nearly 2% month-over-month.
- Institutional client volume continued to grow, increasing 2.1% month-over-month.
- Significant growth in non-US OTC volume. Countries with notable volume growth include Japan (377%), Canada (171%) and India (67%).
- Welcomed new OTC clients from Hong Kong and Switzerland (see heat map below), bringing the number of countries we currently service to 17.
New clients receive $50 in bitcoin upon completing their first OTC trade with us!
Director of Trading, itBit
Please note: itBit never double counts OTC volume or USD dollar amount traded.