Investors are moving away from centralized exchanges as US regulators continue their crackdown on stock markets.
According to the news of Coindesk, there has been a significant decrease in the liquidity of exchanges as crypto money investors move away from centralized exchanges due to regulatory pressure.
This has caused investors to move from centralized exchanges to over-the-counter (OTC) markets.
Evaluating regulatory pressure and investor sentiment, Zahreddine Touag, Head of Commerce at Paris-based marketplace Woorton, said that investors' demand for OTC has increased steadily since FTX's collapse in November.
“We are getting a lot more OTC requests.
As a result, the OTC market seems to be becoming more common, allowing traders to make large trades without the need to go to an exchange.
The latest trend from investors is eerily reminiscent of the time after Mt Gox, then the largest crypto exchange, was hacked in 2014 and subsequently ceased operations.”
Zahreddine Touag evaluates BlackRock's Bitcoin ETF application. "Until a spot BTC ETF is approved by the increasingly competitive SEC, traders will have to go back to OTC deals," Touag said. said.
This situation of investors was also stated in the Kaiko report. In his report, Kaiko wrote that liquidity woes have been felt since the collapse of FTX, and its liquidity on exchanges fell by more than 50% between November and May.
*Not investment advice.