We need the large Over the Counter (OTC) buy orders on exchanges!

[Kakmakr]

Most large Bitcoin buy orders are being done on Over the Counter (OTC) trading platforms and they have zero influence on the Bitcoin price. I was just wondering if Hedge funds and large private buyers could execute their buy orders on exchanges <pre-arranged with these exchanges to prevent hassles>  

They can still execute their Sell orders on OTC platforms, away from exchanges, because Sell orders will push down the price.    We just need a few of these large buy orders to give us a spark for a new Bull run again.  

That's the thing. OTC buyers don't want to push the price up because they're accumulating. OTC sellers don't want to push the price down because they're distributing. They both don't want the price to move against them. I'm sure if OTC liquidity didn't exist, they would limit their buying/selling on exchanges to avoid moving the price.

Why do we need people to resort to algorithmic trading to hide $300 000 000 buy orders?

To trick smaller fish into selling. Whales announcing their presence only harms their ability to build a position.

They can still do this, but if the price movement stays in a Bear market for too long, people would lose interest in Bitcoin as an investment and they will move over to the next big thing.

If they "bump" the price now and again, people will see that there are still room for some speculation and some profits and they will stay around a little bit longer. <So this is beneficial for everyone and not just for them> 

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[Crypdon]

If they're looking at a highly varied portfolio then timing is everything. A large purchase in bitcoin would be enough to lift all the other coins. Unless the large buy order was placed before hand at a price high enough to not trigger any immediate movement

[Kakmakr]

If they're looking at a highly varied portfolio then timing is everything. A large purchase in bitcoin would be enough to lift all the other coins. Unless the large buy order was placed before hand at a price high enough to not trigger any immediate movement

Well, it does not have to be a large "buy" order. They can take a small fraction of their available Fiat capital and rather trade on exchanges and still use OTC platforms for the rest. We just need a constant push on the demand side for Bitcoin to motivate people to continue investing in this technology.

The continued drop in the price, dampened new investors appetite for investments in Bitcoin, because they might think that it is a dying technology, just based on their focus on the price movement.    

[Crypto Girl]

Basically, Over The Counter (OTC) Platforms are decentralized trading/exchange platform where the sharks will be able to exchange easily and buy a large number of Cryptocurrencies with convenience and less transparency.

These are centralized platform that deals only in huge amounts, you send the money in the account provided by them and they will be sending you the coins in your wallet you provided, basically it is a one on one trade.

More likely this OTC are some sort of third party that manage the fund.

Not all OTC orders are easily found on exchanges and platforms. I actually wonder how much OTC is done not even from websites or resources available to the public. If you think about it and you see some of the volumes of trades on Localbitcoins, and then you see also that they have contacts and face-2-face meetings for cash settlements, then you realize,,, there is just so much trading going on that will never be recorded as volumes in global markets.

Good point and these people prefer to have p2p transaction aside from the fact that they can profit more decently than buying in exchange sites. The rate is somehow cheaper anyway.

[1Referee]

More likely this OTC are some sort of third party that manage the fund.

OTC is just referred to as off-spot-exchange trade.

It can be you and me doing a trade directly (P2P), you buying from a miner or whale directly (P2P), or you can have an OTC desk connecting buyers and sellers. In case of the latter, the service provided by OTC desks differs from platform to platform. Some only do the matching part, and some require you to send them the coins and fiat in order to settle the transaction.

The most fascinating part about OTC trades are the volumes we can only speculate about, which is directly one of the main reasons why some large players prefer to avoid spot exchanges.

[Xalata]

hahahaha...you are damn right we really do need that reward after holding bitcoins for a very long time. Actually i have also thought about this question and the only thing that came in mind was that maybe we need to shut these OTCs down because they are the ones that are not making bitcoin rise like we should actually see it. They visit exchange platforms and purchase them at a very low price and sell it very high.

That's sure a good business for them and this is one of the neglected reasons which is not helping the price of bitcoin to rise.

[coinplus]

Buying is definitely something you can do on the market considering you are going to increase the price which helps you out too, this OTC deal has to be done for the selling part, I am sure back when Craig Wright sold like 10k+ bitcoins and dropped the price he had to take a big loss as well because he himself dropped the price and sold it for cheaper than he could have.

If he was given the option to sell them all at 6 thousand dollars he would have taken it and the person who bought it would have bought bitcoins for cheap and could have sold it slowly. That way Craig would get his money asap and for more fiat than how he did and the buyer could have used his time to slowly sell them to the market not destroying it for months and still make a profit.

[Kakmakr]

hahahaha...you are damn right we really do need that reward after holding bitcoins for a very long time. Actually i have also thought about this question and the only thing that came in mind was that maybe we need to shut these OTCs down because they are the ones that are not making bitcoin rise like we should actually see it. They visit exchange platforms and purchase them at a very low price and sell it very high.

That's sure a good business for them and this is one of the neglected reasons which is not helping the price of bitcoin to rise.

No, they cannot stop OTC trading and they should never do that. We cannot solely rely on centralized services like exchanges to buy and sell bitcoins, because these services can be shutdown by governments. 

People use these services because they have way less "red tape" and also because large dumping of coins will not have the opposite affect, by pushing the price down. 

[BTCappu]

I believe why we are not seeing a very big influence in the price of bitcoin is not just because of the exchange this people go to in order to make purchase of bitcoin but because of the trading volume that bitcoin already has, bitcoin has the largest trading volume in the crypto trading world and it will take more than a few millions of dollars to affect the market to move to a very high price, if the same amount of money pumped into bitcoin is being pumped into other crypto with smaller volumes, then we would see a very massive rise in price.

[magneto]

I don't see the reasoning in why the market needs to necessarily operate through OTC orders.

The institutions or the investors with high capital will do whatever that is best for themselves. If they decide that they want to conduct a private trade without moving the market too much in the short run, then they will do it over the counter potentially.

But I don't think that there is any tangible benefits that would arise through incentivising or promoting the use of OTC orders necessarily. If there isn't any utility in OTC trades for a certain purpose then traders would simply avoid it, it's not up to the market to control. If traders do decide to go the over the counter route on a large transaction then it could prevent flash crashes and have a more stable short term BTC price, but if their objective is to move the market, there is nothing we can do to stop them from doing it.

[Kakmakr]

I don't see the reasoning in why the market needs to necessarily operate through OTC orders.

The institutions or the investors with high capital will do whatever that is best for themselves. If they decide that they want to conduct a private trade without moving the market too much in the short run, then they will do it over the counter potentially.

But I don't think that there is any tangible benefits that would arise through incentivising or promoting the use of OTC orders necessarily. If there isn't any utility in OTC trades for a certain purpose then traders would simply avoid it, it's not up to the market to control. If traders do decide to go the over the counter route on a large transaction then it could prevent flash crashes and have a more stable short term BTC price, but if their objective is to move the market, there is nothing we can do to stop them from doing it.

We do not want to stop them from doing that, we merely hinting that some of them should "bump" the price now and again with a large trade, to stimulate the growth. A slowly rising price is good for everyone and not just for them.  

Before 2017, we had a continuous stretch, where the Bitcoin price steadily went upwards and that was one of the best times in Bitcoin's history, because most people were positive about it's future and that stimulated the development of new innovative Bitcoin companies and ideas.

We want those days to return to Bitcoin.  

[Crypdon]

As i'm no whale i haven't done any OTC trades but i would guess that it comes coupled with some extra security reassurances that exchanges don't offer. Or they get a better price when buying

[Kakmakr]

As i'm no whale i haven't done any OTC trades but i would guess that it comes coupled with some extra security reassurances that exchanges don't offer. Or they get a better price when buying

I would say that they have less security, because not all OTC trades are done on platforms where KYC/AML requirements are needed to do transactions with other traders. <It grants these people some extra anonymity, if that is one of their requirements> 

I think the main reason why some whales use OTC platforms and not exchanges are the "red tape" and "strict Tos" hassles with most of these exchanges. <You regularly hear horror stories of people's accounts being blocked for some obscure reason on exchanges> 

A lot of people do not trust exchanges after MtGox and many of the other exchange hacks that took place over the years.