Bitcoin (BTC/USD) Surges Past $70k, Eyes $75k Amid Declining OTC Inflows

Bitcoin (BTC/USD) has recently crossed the $70,000 mark for the first time since July, marking a significant milestone for the leading cryptocurrency. This surge comes as over-the-counter (OTC) desk inflows have decreased, suggesting a shift in trading dynamics.

In the past week, Bitcoin's price rose by 8%, although it experienced a slight pullback of 1% at the time of writing. The current trading environment is influenced by a notable increase in inflows into U.S. spot exchange-traded funds (ETFs), which many analysts believe is linked to the upcoming U.S. elections and the perceived pro-crypto stance of Donald Trump.

The recent uptick in Bitcoin's price can be attributed to the current state of OTC desks, where private trades occur without affecting public market prices. Currently, OTC desks hold approximately 416,000 BTC, valued at around $30 billion, a significant increase compared to the average of less than 200,000 BTC held earlier this year, according to CryptoQuant data.

However, the volume of Bitcoin traded through OTC desks has seen a decline, dropping to its lowest levels this year. In October, OTC desks managed about 90,000 BTC daily, which is a 52% decrease from the first three quarters of 2023. This reduction in OTC activity may have contributed to Bitcoin's ability to break past the $70k threshold.

As the U.S. elections approach, ETF inflows have surged, with Bitcoin ETFs attracting nearly $4 billion since October 11. On Monday alone, U.S. spot ETFs saw inflows of $427.6 million, continuing a trend of increasing investments. The recent price dip could be temporary, and market participants remain hopeful for further gains if inflows persist.

Currently, Bitcoin is experiencing a brief pullback, trading around the critical level of $72,000. The daily candle suggests a potential inside bar bearish candlestick pattern, but the overall bullish sentiment remains strong. A retest of the trendline break or the $70,000 level is possible, with key support levels at $70,000 and $68,334. Immediate resistance is noted at $73,777, with $75,000 being the next significant target.

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This content is intended for informational purposes only and should not be considered as investment advice. The views expressed are those of the author and do not necessarily reflect the opinions of OANDA Business Information & Services, Inc. For more information about global market trends, visit https://www.marketpulse.com/. © 2023 OANDA Business Information & Services Inc.