Despite the bear market and the decline in value, the cryptocurrency market is still in a good position. The reported market cap is just half of the actual money being traded in crypto. According to Binance CEO Changpeng Zhao the over-the-counter trading market is at least the same size as the exchange trading market. Which means volume is at least double of the reported number. He said this in an interview with CNBC.
Currently the market cap is reported as being 212 billion dollars. But those numbers only reveal one part of the trading, the part that’s public and on exchanges. OTC trading allows for major trading volume without those trades influencing the price of cryptocurrencies.
“What I’ve heard is the OTC market is at least as large as the live recorded volumes. So that is at least 50 percent of volumes that is not being reported on CoinMarketCap. But we’re not heading to that business, so we don’t know the real volumes.” – Changpeng Zhao said.
Exactly one year ago the global market cap went up big time. Within two months it went from 200 billion to almost 800 billion dollars. After which it dropped again and the market became increasingly bearish. For the past three months the market cap and the price of BTC have been very consistent.
Nobody knows when the next price rally will happen. It can be the release of bitcoin on platforms like Bakkt, or the upcoming Bitcoin ETF or perhaps an event that isn’t known yet. “Sooner or later, something will trigger it”, Zhao said to CNBC.