bitcoinrothbard on Nostr: Many people have a misunderstanding of #Bitcoin Over-The-Counter (OTC) trading. OTC ...
Many people have a misunderstanding of #Bitcoin Over-The-Counter (OTC) trading. OTC trades do very much impact price. OTC “desks” work to source liquidity for large buys / sells (often via connection to multiple exchange counterparties). Their goal is to get buyers / sellers better execution than just slamming a large order on a single exchange which can price cause slippage. This is often done automatically via Request-For-Quote (RFQ) systems.
All trades impact spot price, even if they’re done OTC. E.g., many people take the other side of a large sell trade and would have bought from other sellers. A large marginal seller pushes down price. Granted if someone market bought / sold hundreds of millions on a single exchange, there would likely be ripple effects due to price slippage, but doing OTC would still 100% impact the price.
To learn more:
https://www.gsr.io/trading/otc-trading/
https://www.kraken.com/institutions/otc
All trades impact spot price, even if they’re done OTC. E.g., many people take the other side of a large sell trade and would have bought from other sellers. A large marginal seller pushes down price. Granted if someone market bought / sold hundreds of millions on a single exchange, there would likely be ripple effects due to price slippage, but doing OTC would still 100% impact the price.
To learn more:
https://www.gsr.io/trading/otc-trading/
https://www.kraken.com/institutions/otc