0 sats \ 7 replies \ @Anonymous_Hodler OP 15 Feb \ parent \ on: ETF Inflows and BTC Price correlation bitcoin
Let s try to be more visual…
Blackrock buys shit ton of btc, decreasing the supply… but doesn t buy anything « on the market »
Then the market orders show buyers and sellers, and these orders are not affected by the diminished supply since this supply is the exchange reserve…
if the supply / demand had an effect on the « public market » there would be no point to trade over the counter, don t you think?
reply
1.8M btc held by exchanges. This supply is not any where to be dry, so it still doesn t answer the question
reply
reply
Ok you got a point here… but… it doesn t answer why prices move when trades are made OTC !
reply
reply
I am reading as carefully as i can here from work, but still, your answer doesn t answer my question. Maybe you don t get my question or maybe i wasn t clear enough. You described me blackrock buying coinbase « reserves » otc creating a supply crunch which i agree overall but still, it doesn t explain why the spot price move. It would move if the trades were happen like if you and I bought from the exchange, but the point of OTC is purposedly to be different to avoid chaotic price variations…
reply
If there is plenty of supply in OTC to satisfy the demand, then spot price will not change. If there is not enough supply in OTC to satisfy the demand, then some OTC buyers will have to look elsewhere to buy big chunks of btc. This can impact spot price.
reply