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0 sats \ 3 replies \ @Anonymous_Hodler OP 15 Feb \ parent \ on: ETF Inflows and BTC Price correlation bitcoin
Ok you got a point here… but… it doesn t answer why prices move when trades are made OTC !
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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…
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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.
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