OTC Desks Acted as Shock Absorbers During Crypto Liquidation Crisis
Over-the-counter trading desks played a pivotal role in stabilizing digital asset markets during recent volatility, according to Finery Markets. The liquidity providers absorbed sell-side pressure without exacerbating price swings across exchanges.
Unlike public order books that amplify volatility through cascading liquidations, OTC desks facilitated block trades with minimal market impact. This mechanism prevented localized sell-offs from triggering broader contagion.
Finery Markets' analysis highlights how institutional-grade infrastructure is evolving to mitigate systemic risks in crypto. The report comes as traditional finance firms demand more sophisticated risk management tools for digital asset exposure.