Bitcoin News Today: OTC Desks: Bitcoin's Firewall in $20B Liquidation Crisis

Bitcoin's (BTC) recent rebound from late-week lows near $110,000 has stalled just above $113,000, as a lack of fresh U.S. economic data leaves traders in limbo. The absence of key macroeconomic indicators-exacerbated by a government shutdown-has left the U.S. dollar (USD) in a state of equilibrium, with analysts noting that "USD bears have become discouraged by the lack of soft jobs evidence," according to ING. This shift has created a headwind for Bitcoin and other dollar-denominated cryptocurrencies, which now face a stronger greenback and tighter liquidity conditions .

The situation is compounded by a stagnating stablecoin supply, a critical source of fresh capital for crypto markets. Data from Glassnode shows that the combined supply of major stablecoins like USDT, USDC, and DAI has barely moved in 30 days, hovering around $189 billion. This lack of liquidity inflows contrasts sharply with the explosive growth seen during the November-December 2024 rally, where stablecoin inflows fueled a surge from $70,000 to over $108,000. "The late-2024 rally required almost 2x the capital inflow for a smaller price gain, highlighting a cooling speculative demand," Glassnode noted .

Meanwhile, over-the-counter (OTC) desks have emerged as critical stabilizers during recent market volatility. A report from Finery Markets revealed that OTC platforms absorbed massive liquidation pressures during a sharp selloff in late October, preventing contagion from spreading to broader markets. These desks, with their private liquidity pools and off-screen trading, narrowed bid-ask spreads and cushioned the blow for large traders. "OTC markets act as a firewall against systemic risk by allowing large volumes to trade without revealing positions," Finery explained, noting a 107% surge in trading volume in private BTC/USDT and ETH/USDT rooms during the crisis .

Institutional demand for Bitcoin remains robust, with ETF inflows continuing to pour in. On Tuesday alone, spot BTC ETFs saw $102.7 million in net inflows, while ETH ETFs added $236.2 million, according to Farside Investors. This momentum has fueled optimism, with QCP Capital suggesting that Bitcoin could resume its bull run if liquidity dynamics stabilize. However, challenges persist, including the risk of renewed tariff debates and potential shifts in Federal Reserve policy .

Tokenized gold has also gained traction as a safe-haven asset, with its market cap hitting $2.57 billion in 2025. Tether's XAUT and Paxos' PAXG led the charge, with XAUT's supply jumping $437 million after Tether minted 129,000 new tokens on Ethereum. This growth mirrors the rise of gold-backed tokens in 2023, as investors seek refuge from macroeconomic uncertainty .

Looking ahead, markets remain on edge for clearer macroeconomic signals. The upcoming U.S. consumer price index (CPI) report on Wednesday could sway the dollar's trajectory and, by extension, Bitcoin's. For now, traders are cautiously optimistic but acutely aware of the fragility of current conditions. As one analyst put it, "The next move for Bitcoin will depend on whether bulls can muster the liquidity and momentum to break through key resistance levels-or if the dollar's strength and stagnant stablecoin flows will reignite the bears" .

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[1] No Data, No USD Bears. Headwind for Bitcoin?: Crypto Daybook Americas (https://www.coindesk.com/daybook-us/2025/10/14/no-data-no-usd-bears-headwind-for-bitcoin-crypto-daybook-americas)

[3] Stalled Stablecoin Supply Casts Doubt on BTC's Bullish Recovery (https://finance.yahoo.com/news/stalled-stablecoin-supply-casts-doubt-081311517.html)

[5] Tokenized Gold Market Reaches New Highs in 2025 (https://bitcoininfonews.com/tokenized-gold-market-2025-heights/)

[8] $20B BTC and Crypto Liquidation Crisis: How OTC Desks (https://www.coindesk.com/markets/2025/10/15/the-usd19b-crypto-liquidation-crisis-highlighted-otc-desks-as-crucial-shock-absorbers-finery-markets-says)