Price Decline Expected as Bitcoin OTC Desk Balances Soar – Analyst

An analyst by the name of EgyHash has suggested that a decline in Bitcoin prices may be imminent. The CryptoQuant analyst made this observation after noticing that Bitcoin Over-the-Counter (OTC) desk balances for miners have increased by over 70% in the last three months.

He noted that the OTC balance rose from 215,000 BTC in June to 368,000 BTC in August, marking an increase of 153,000 BTC. According to him, the OTC balance has not reached such a level since 2022.

EgyHash also pointed out in his analysis that during this period, miners are seeking OTC deals to sell their BTC as a better execution method, avoiding the negative impact that selling on exchanges might cause in the crypto market.

The increase in OTC desk balances is undoubtedly a sign of heightened liquidation activities by crypto miners. Furthermore, the analyst noted that during such periods, there is typically a significant decline in Bitcoin prices.

Effect of Cryptocurrency Miners Selling Off

In June 2024, the cryptocurrency market was disrupted due to a Bitcoin miner sell-off. The situation stabilized after some time. This sell-off occurred shortly after the halving event, which reduced mining rewards, rendering older mining machines less cost-effective.

During that period, mining activities decreased, leading miners to sell their Bitcoin over the counter. Although the selling pressure from miners eventually reduced, it wasn’t enough to trigger a positive movement in BTC prices.

Meanwhile, at the time of writing this report, Bitcoin is trading around $60.79K on CoinMarketCap, with a single-day high of $61,819.

Kamala Harris Moves to Support Crypto Community

In another development, Vice President Kamala Harris has pledged to support measures that will aid the growth of cryptocurrency, according to her campaign policy adviser. This comes shortly after Donald Trump pledged support for the cryptocurrency community and revealed that he holds some cryptocurrency in his savings.