As per the Data of On Chain, there are Institutions Purchasing Bitcoin Over the Counter
Even if the trading of the Bitcoin is quite high all the time, there are so many institutions that are still purchasing the Bitcoin. They have been using the counter platform for keeping their investment protected against the impact that has been happening all across the market. Unlike the retail investors or even the institutions that are of small scale using the crypto exchanges, there are many institutions that are actually trading the Bitcoin (BTC,-0.24%) using over the counter trading. This way, their transaction will not move the prices they would if the investors used huge centralized exchanges.
One of the fine reasons why such transactions are frequent is because they are more opaque compared with trades that happen on the exchanges. If the data is not transparent on the ITC transactions then it is quite challenging to track and even gauge the crypto market side. There are some metrics that were monitored by the analytics of the blockchain firm CryptoQuant that gave an idea of what exactly has been happening in the OTC market if the crypto.
Basically, the overall value of the Bitcoin is transferred from Pro wallets of the Coinbase form 2020. This happened when there was a huge outflow of the Bitcoin that took place on Coinbase Pro which it usually goes on to the own cold wallets of the Coinbase that has been holding 6,000-8,000 BTC. It is quite clear that certainly, this is not reaching the hot wallets and the withdrawals of exchange users can happen but nearly 99% of big transactions more than 5,000 Bitcoin are either internal transfers or going to the wallets of the custody. Besides the custody of the Coinbase is well integrated with the OTC desk of the Coinbase which means that the clients can leverage the desk of OTC without requiring to move their funds from the cold storage.
CBW - External Analyst