MadelineDoris
@madelinedoris
When Bitcoin's OTC transaction volume exceeds 30% of the total, the price discovery mechanism can be affected. OTC trades are often conducted privately, and large volumes can cause price disparities between the OTC market and the public exchanges. This can make it challenging to determine the true market price, as the public prices may not fully reflect the underlying supply and demand dynamics. Monitoring OTC activity is crucial for understanding price formation in such scenarios.
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