- Over-the-counter (OTC) crypto trading volumes have significantly risen, driven by election results and increased investor activity.
- Market participants are diversifying into altcoins, highlighting a shift in risk appetite and demand for liquidity.
What happened: Google Pay supports expanded crypto transactions
The over-the-counter (OTC) crypto trading market is experiencing a remarkable surge in activity. According to Kraken’s Tim Ogilvie, OTC trading volumes have skyrocketed by 220% year-over-year, with similar trends observed across other trading firms.
The election results in major markets have catalysed investor interest, prompting significant trading activity in Bitcoin, Ethereum, and altcoins like Solana. Wintermute’s Jake Ostrovskis and GSR’s Embert Lin echoed these sentiments, citing heightened institutional involvement and a move toward broader cryptocurrency exposure.
The trend is further bolstered by improved liquidity in alternative assets. This shift represents growing confidence in the asset class, as evidenced by the entry of new market participants and the establishment of large trades.
Also read: FDA authorises first OTC hearing aid software to be used in Apple’s AirPods Pro
Also read: Nuvei expands Google Pay integration in Latin America
Why it’s important
The dramatic increase in OTC crypto trading volumes reflects evolving market dynamics and heightened institutional interest. The election results have played a pivotal role in reigniting investor enthusiasm, signalling a more favourable regulatory environment.
Beyond Bitcoin and Ethereum, the increased demand for altcoins underscores a maturing market where participants seek diverse exposure.This activity also suggests improved liquidity and infrastructure, enabling larger trades and minimising volatility compared to traditional exchanges.
Notably, innovations like ETF approvals and the rise of derivatives are reshaping the market landscape, making it more accessible and attractive to institutional players.The broader implications are significant, with crypto adoption gaining momentum.
As new tools and instruments emerge, the market’s ability to accommodate varying levels of risk and capital is expanding, pointing to sustained growth in the sector.
