Glassnode data reveals that Bitcoin held in addresses tied to over-the-counter (OTC) desks currently stands at the lowest level since June 15, with caution urged in drawing conclusions.
According to CoinDesk, Glassnode reported that the level of Bitcoin held in addresses associated with OTC desks has dropped to its lowest level since June 15. As of Thursday, the OTC desk balance stood at 5,138 BTC, equating to around $150 million at the current market price of $29,225. The balance has experienced a 33% decrease from its June high of 7,697 BTC.
OTC desk balances are generally considered a proxy for institutional activity. This decline coincides with Bitcoin's market value dropping by 84% in the first half of the year. Some analysts previously considered increased balances on OTC desks as a bullish sign, indicating that institutions and large capital allocators were increasingly focusing on Bitcoin.
High-volume traders and institutions usually deal with OTC desks to minimize the impact on the market price of the asset. However, caution is advised when interpreting changes in OTC desk balances, as address-labeling issues may occur, and balances do not always accurately indicate whether the desk is accumulating or intending to liquidate coins on behalf of clients.