Bitcoin (BTC) OTC Desk Reserves Plummet as Institutional Demand Surges

Bitcoin's over-the-counter desks (OTC Desks) are experiencing a considerable reduction in reserves, raising concerns about an imminent supply squeeze in the market.

Bitcoin’s over-the-counter (OTC) desks are seeing a substantial reduction in reserves, which may herald an imminent supply squeeze in the market.

As reported by crypto analytics firm Glassnode, OTC desk balances have seen a massive decline from 480,000 BTC in September 2021 to just around 146,000 BTC as of early 2025. This stark decrease reflects the increased institutional demand for Bitcoin, as large players, including corporations and hedge funds, rely heavily on OTC desks for private transactions without impacting market prices.

The report further noted that the closure of institutions like Celsius and three Arrows Capital has also contributed to the reduction in OTC Bitcoin reserves.

“The depletion of OTC Bitcoin reserves has significant implications for the market. As institutions continue to buy, they may start engaging in exchange-based transactions, leading to larger order sizes and potential price volatility. Moreover, Bitcoin’s dominance in the cryptocurrency space has increased to 58.3, showcasing off-the-charts institutional interest.”

The analysis also found that indicators suggest Bitcoin is nearing miner capitulation, which may lead miners to sell off reserves, further affecting market dynamics and liquidity.

“This aligns with the broader market trends, where a pessimistic outlook prevails. However, it’s important to note that despite the market crash, Bitcoin has recovered remarkably quickly, showcasing its resilience and potential for further gains.”

The crypto market is still recovering from yesterday's crash, and Bitcoin's recovery may take some time. However, with a huge amount of interest pouring in from all directions and the BTC price poised for a potential surge, it seems like interested buyers will be scrambling for limited assets.

The implications of the tightening supply also highlight the importance of watching OTC desk activities as a reliable indicator of price movements.

As the world expresses bullish sentiment for Bitcoin, let us take a look at its recent performance and try to make an updated BTC price prediction.

BTC Price Analysis of Last 24 Hours: Market Crash Haunts Bitcoin, Investor Sentiment Remains Bullish

Bitcoin began trading at $87,100. In the beginning, it seemed to be going through some range-bound fluctuations, working between the $87,600 resistance and $86,820 support. BTC attempted to break out upward, but it wasn’t to be. The failure caused a significant trend reversal, as a death cross led BTC into a steep downtrend.

On the way, the downtrend found the support of another death cross at 4:00 AM UTC. The RSI also indicated high selling pressure, as it ventured into the oversold region.

By 7:45 UTC, Bitcoin was trading at $85,170. It soon entered a trading range. A golden cross was observed, but was not able to carry Bitcoin out of the range, as Bitcoin found strong resistance at the $85,500 mark.

Chart 1: analyzed by raodevansh18, published on TradingView, March 29, 2025

Bitcoin’s failure to break resistance resulted in another downtrend, supported by a death cross at 13:00 UTC. Eventually, Bitcoin was seen at $83,360 support. An hour later, a golden cross appeared, and the BTC price commenced a slow ascent.

But Bitcoin soon faced rejection at $86,400, and the trend reversed. As of the last update, the coin was seen resting on the $83,360 support.

BTC Price Prediction: Will Bitcoin Recover Today?

Keeping in mind that the market is still recovering from yesterday’s crash, Bitcoin’s recovery may take time. While a huge amount of interest pours in from all directions, the BTC price is bound to grow. For now, the resistance trendline seems to be falling.

A bearish triangle can be seen in the works, so it looks like Bitcoin will abandon current support levels and dip lower. Any positive market activity will take place in the second half of the day.

With OTC reserves running low, we may be looking at fascinating times in the coming months.