How does OTC volume affect the price of digital assets?

1 answers

• Dec 14, 2021 · 3 years ago
  OTC volume can have a notable impact on the price of digital assets. OTC trades are typically conducted off-exchange, which means they don't directly affect the price on public exchanges. However, the volume of OTC trades can still reflect the sentiment and demand for a particular digital asset. If there is a high volume of OTC trades buying a digital asset, it can indicate increased demand and potentially drive up the price. Conversely, if there is a high volume of OTC trades selling a digital asset, it can indicate selling pressure and potentially lead to a price decline. Therefore, monitoring OTC volume is important for understanding market trends and predicting price movements.
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