Fun

Cumberland Sees Massive OTC Moves During Crypto Market Rout — ‘Most Volume We’ve Seen This Year’

News Feed - 2022-06-20 03:06:17

Cumberland Sees Massive OTC Moves During Crypto Market Rout — "Most Volume We"ve Seen This Year"


During the last week, while crypto markets got hammered, digital currency-centric over-the-counter (OTC) trading desks were swamped with orders. The cryptocurrency OTC trading desk Cumberland, a subsidiary of DRW, explained that on June 13, the firm saw 30% more volume than the previous year-to-date high on May 13. Cumberland Says ‘On Big Swings, More Volume Tends to Come to OTC Desks’


Over-the-counter (OTC) trading desks allow high-net-worth crypto traders to trade coins without affecting spot markets as much as they would trading on a traditional exchange. OTC trading desks also provide liquidity for big buyers that smaller exchanges cannot provide. A number of companies offer OTC services to crypto traders like Kraken OTC, Falconx, Cumberland, Athena Investment Services, Crypto Desk, B2C2, Bankhaus Scheich, Bitpanda Plus, and Coin Cola.


Amid the recent crypto market carnage, the DRW company Cumberland tweeted about the firm’s OTC flow during the past week and let people in on some of the moves that were made. “The most frequent question we’re asked on weeks like this is ‘what does the flow look like?’” Cumberland tweeted on June 14. “OTC flow gives some insights into how the market is handling these major moves,” the OTC trading desk added. Cumberland was founded in 2014, and over the last few years, it has become one of the top OTC desks worldwide.


When Cumberland first started, news reports noted that the company was able to acquire massive amounts of bitcoin (BTC) via a few U.S. Marshalls’ operated auctions. Cumberland offers more than 30 different digital assets against 500 pairs, and the company claims to be “one of the largest liquidity providers in the cryptocurrency space.” Speaking about the recent crypto market rout, Cumberland disclosed that lots of crypto volume came directly to OTC desks.


Cumberland said: On big swings, more volume tends to come to OTC desks, and yesterday was no exception; it was the most volume we’ve seen so far this year. In fact, it was 30% more volume than the previous YTD high, May 13th. Traders tend to use OTC during fast markets because it’s much easier to move size. Volumes were very BTC-centric, with about 75% of the total flow in bitcoin. ETH was the majority of the remainder. When looking to exit risk, traders tend to trade the most liquid products.


The crypto market bloodbath had shown a significant amount of leverage was wiped out during the last two weeks. Cumberland suggested that quite a bit of the flow on June 13 was liquidations. A number of crypto lending firms have been accused of being liquidated on very large positions in recent times such as Celsius. Large crypto hedge funds like Three Arrows Capital (3AC) are also being accused of having financial hardships and dealing with liquidations from over-leveraged positions.


“The flow ratio suggests a lot of the flow was liquidations, with a 2:1 ratio of sellers to buyers,” Cumberland’s Twitter thread concluded. “As always, Cumberland is proud to act as the backstop of liquidity during the most severe market moves.” Tags in this story 2:1 ratio of sellers, 3AC, Athena Investment Services, B2C2, Bankhaus Scheich, Bitpanda Plus, BTC, Celsius, Coin Cola., Crypto Desk, crypto market bloodbath, Cryptocurrencies, Cumberland, Cumberland OTC, DRW, DRW Holdings, ETH, Falconx, Kraken OTC, Liquidations, OTC desks, OTC flow, OTC Trading, OTC trading desks, Three Arrows Capital (3AC), trade volume, U.S. Marshalls Auctions, volume


What do you think about Cumberland’s summary of OTC flow from the recent crypto market bloodbath? Let us know what you think about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Binance Suspends Direct Deposits and Withdrawals in Brazil NEWS | 3 hours ago Class-Action Lawsuit Accuses Terraform Labs of Misleading Investors NEWS | 9 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSberbank to Conduct First Digital Asset Transaction on Own Platform Next articleBinance Suspends Direct Deposits and Withdrawals in Brazil Show comments More Popular NewsIn Case You Missed ItFollowing a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days


Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.Today"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto

News Feed

Helen Partz14 hours agoCrypto debanking could drive industry underground: Australian TreasuryThe Australian government is addressing the risks of cutting banking services to crypto exchanges amid a flurry of banks restri
Amaka Nwaokocha1 hour agoAI companies commit to safe and transparent AI — White HouseThe Biden Administration emphasized the responsibility of AI companies to ensure their products are safe for use.832 Total views4 Tot
Helen Partz11 hours agoUK tops crypto activity in Central, Northern and Western Europe: ChainalysisCrypto adoption in the United Kingdom has been growing as the country adopts more regulations targeting crypto and stable
Stablecoins Are Crypto’s Version of Fractional Reserve Banking
Stablecoins Are Crypto"s Version of Fractional Reserve Banking Stablecoins provide much sought after stability in the volatile crypto markets. They are sometimes even said to aff
Sanctions May Not Affect Russia’s Access to Crypto, Reports Claim
Sanctions May Not Affect Russia’s Access to Crypto, Reports Claim As sanctions rain on Russia, following the Kremlin’s decision to invade Ukraine, media reports have sugge
Japan’s Metaplanet plans 1B yen bond sale to buy more Bitcoin
Jesse Coghlan2 hours agoJapan’s Metaplanet plans 1B yen bond sale to buy more BitcoinIf it could buy the Bitcoin today, Metaplanet’s total Bitcoin holdings would be 241 Bitcoin, worth around $15 million.1097 Total vi
William Suberg12 hours agoBitcoin is in ‘new bull cycle’ — Metric that bottomed before 70% gainsBitcoin Realized Cap HODL Waves signal that the current bull market launch is a classic repeat of BTC price history.88
India’s Central Bank RBI Close to Digital Currency Decision as Paypal Exits Indian Payments Market
India"s Central Bank RBI Close to Digital Currency Decision as Paypal Exits Indian Payments Market The Reserve Bank of India (RBI) is actively working on a digit
White hat hacker group SEAL launches crypto threat-sharing center
Martin Young10 hours agoWhite hat hacker group SEAL launches crypto threat-sharing centerThe Security Alliance said it’s helped to recover $50 million since it formed, and now it has launched a tool to assist in fighti
12 Bitcoin Cash-Fueled Flipstarter Campaigns Raise $1 Million
12 Bitcoin Cash-Fueled Flipstarter Campaigns Raise $1 MillionThe Flipstarter platform has gained traction in the last five months raising $1 million in bitcoin cash for 12 different
Ebb and Flow of Stablecoin Economy Continues With BUSD’s Market Cap Dropping Below $10 Billion Range
Ebb and Flow of Stablecoin Economy Continues With BUSD"s Market Cap Dropping Below $10 Billion Range The realm of stablecoins is an ever-evolving landscape and the number of coins
As Lightning’s Economy Takes Shape, Devs Are Split on Proposed Fee Hike
Fees aren’t just a topic of discussion for bitcoin users anymore. As the tech matures and an economy develops, fee discussions are making their way into the lightning network too.