Bitcoin OTC Trading Volume Spikes After US Election, What's Going On?
Crypto OTC Trading Volumes Surge After US Election: What's Going On?
The recent US election results have given a big boost to the cryptocurrency market, especially over-the-counter (OTC) trading volume.
According to leading trading firms, the surge in trading demand is not only due to rising prices but also due to the post-election market excitement.
OTC Trading Hits Record High
Kraken Institutional Director Tim Ogilvie revealed that Kraken's OTC trading volume has increased220%over the past year, especially in the post-election period.
Similarly, BitGo's Brett Reeves said two-thirds of BitGo's recent trading volume was recorded in just the last three months.
In mid-2024, OTC trading was fairly quiet, but changed dramatically as investors looked to take advantage of the election results to adjust their financial strategies.
The Shift To Altcoins
Due to the high demand for Bitcoin (BTC) , the supply at OTC desks has plummeted, losing 26,000 BTC in 2024 and another 40,000 BTC in November alone.
This forced traders to look to altcoins like Solana (SOL) , Binance Coin (BNB) , Tron (TRX), and Aave (AAVE) due to their high liquidity and great profit opportunities.
Large institutions are focusing on liquid assets to execute large trades efficiently. This paves the way for new trends in the OTC market.
OTC Futures Trading: ETFs and Options
Analysts expect demand for Bitcoin and Ethereum to remain high, but the focus is gradually shifting to the derivatives market.
Options related to Bitcoin ETFs are creating more diverse and accessible financial products, helping cryptocurrencies integrate further into the traditional financial system.
In the future, new ETFs, like Solana (SOL) or XRP , could bring more stability to the market, while also attracting new capital.
This will be a huge boost not only for OTC trading but for the entire crypto industry.
Conclusion: The Market Is Moving
The increase in OTC trading volume after the US elections is a clear signal of new momentum in the crypto market.
With the development of advanced financial products and growing demand from institutions, OTC trading is likely to play an increasingly important role in the global cryptocurrency ecosystem.