- Bitcoin gained 11% in October, closing at $72,335, sparking supply concerns in OTC trading.
- Traders highlight dwindling Bitcoin availability in OTC markets, predicting significant price surges soon.
- Market buzz hints institutions are buying large amounts of Bitcoin, impacting future supply and demand.
Bitcoin rose by 11% throughout October, closing the month at $72,335, according to TradingView data. Though notable, this performance did not match previous October gains, which have averaged around 22% since 2013. Despite this, anticipation grew in the trading community as speculation surfaced about a potential shortage in the over-the-counter (OTC) Bitcoin market.
Crypto trader Alex Becker asserted on Oct. 31 that a significant price surge could be on the horizon, stating that “absolutely absurd amounts of Bitcoin [are] being bought OTC by institutions.” His remarks were shared with a sense of urgency, suggesting that a dramatic shift in the market might be underway.
Source: Alex Becker on X
Supply Pressure Raises Market Tensions
The sentiment was echoed by various voices in the cryptocurrency space. An anonymous trader known as The Bitcoin Therapist highlighted that “rumors are circulating OTC desks are running dry on Bitcoin,” hinting that a supply squeeze might be approaching. Bitcoin trader Magoo PhD also emphasized the tight supply situation to their substantial online following, which numbers over 49,000.
Industry sources and traders have hinted at the possibility that, once institutions secure sufficient Bitcoin holdings, coordinated efforts to boost media coverage could prompt an influx of retail investors. Such a scenario could strain available supply on popular trading platforms, potentially pushing prices even higher.
Early October Concerns and Price Recovery
At the beginning of October, the market narrative known as “Uptober” faced skepticism as Bitcoin’s price briefly dipped below $60,000, reaching $59,407 on Oct. 11. This marked a decline of 7% over a four-day period, raising questions about whether the month’s reputation for positive performance would hold.
However, Bitcoin regained momentum, surpassing the $70,000 threshold by Oct. 29 for the first time since early June. Despite this, Bitcoin’s overall search interest lagged behind other popular topics, such as artificial intelligence, indicating that mainstream attention had not surged in tandem with the price.
Bitcoin’s trajectory has traders watching closely, particularly with speculation growing that OTC markets are tightening. This scenario fuels predictions of a potential price jump as supply may become scarce in the face of renewed demand.
