flash on Nostr: β‘οΈπ¨ They're buying, but the price isnβt going up. Why? #Bitcoin π OTC ...
β‘οΈπ¨ They're buying, but the price isnβt going up. Why? #Bitcoin
π OTC Purchase π
πΆ An OTC (Over-the-Counter) transaction is a private negotiation between two parties to buy or sell an asset without going through a public exchange. It allows for large volumes to be traded with customized conditions (price, timing, etc.) while remaining discreet and having no direct impact on the market.
π How It Works π
π· The two parties (buyer and seller) negotiate directly with each other or through an intermediary (like an OTC broker).
πΆ The agreement covers customized terms: price, quantity, timing, and other conditions.
π· Investors or companies use OTC to buy or sell large quantities of assets (stocks, currencies, cryptocurrencies, etc.) without affecting prices on the public market.
πΆ Thus, unlike transactions on exchanges, which are standardized, OTC transactions offer more freedom in negotiating terms.
π Example π
π· An investor wants to buy $10,000 worth of BTC. Placing this order on a public exchange could risk driving the price up due to demand. Through an OTC transaction, they can negotiate directly with a seller and acquire the BTC at an agreed price, without the transaction being recorded on the public market, thus avoiding any impact on the price or volatility.
πΆ The advantages are that OTC transactions remain discreet, do not impact market prices, and allow the parties to customize the terms of the exchange.
π· This is how they can continue to buy heavily under $100,000 (often from miners) without the price moving.
π OTC Purchase π
πΆ An OTC (Over-the-Counter) transaction is a private negotiation between two parties to buy or sell an asset without going through a public exchange. It allows for large volumes to be traded with customized conditions (price, timing, etc.) while remaining discreet and having no direct impact on the market.
π How It Works π
π· The two parties (buyer and seller) negotiate directly with each other or through an intermediary (like an OTC broker).
πΆ The agreement covers customized terms: price, quantity, timing, and other conditions.
π· Investors or companies use OTC to buy or sell large quantities of assets (stocks, currencies, cryptocurrencies, etc.) without affecting prices on the public market.
πΆ Thus, unlike transactions on exchanges, which are standardized, OTC transactions offer more freedom in negotiating terms.
π Example π
π· An investor wants to buy $10,000 worth of BTC. Placing this order on a public exchange could risk driving the price up due to demand. Through an OTC transaction, they can negotiate directly with a seller and acquire the BTC at an agreed price, without the transaction being recorded on the public market, thus avoiding any impact on the price or volatility.
πΆ The advantages are that OTC transactions remain discreet, do not impact market prices, and allow the parties to customize the terms of the exchange.
π· This is how they can continue to buy heavily under $100,000 (often from miners) without the price moving.