Bybit Rebuilds ETH Reserves with Massive OTC Purchases

• Bybit aggressively replenishes reserves, acquiring 106,498 ETH worth $295M via OTC deals, signaling strong market confidence.
• Ethereum’s price dipped after Bybit’s Feb 21 outflows but rebounded to $2,771 as inflows resumed, stabilizing market sentiment.
• Bybit’s large OTC buys highlight institutional confidence in ETH, using strategic accumulation to avoid excessive price volatility.

Bybit has increased its Ethereum holdings. In the last 24 hours, the exchange reportedly bought 106,498 ETH for $295 million through over-the-counter (OTC) transactions. This comes 40 minutes after another purchase of 34,743 ETH for $97.7 million. Additionally, Bybit spent $100 million USDT to buy 36,893 ETH at $2,711 from Galaxy Digital and FalconX via OTC deals. These transactions suggest Bybit is aggressively rebuilding its reserves after recent outflows.

Bybit’s ETH Reserves Recovering

As per the recent report, the Ethereum reserves in Bybit are gradually on the recovery path from a massive outflow event. Net inflows of 139,000 ETH have been recorded by the exchange since the events surrounding a security breach in the major sense. This upsurge can denote increasing investor confidence as well as healthy activity on trading.

A recent chart illustrates Ethereum’s net flow on Bybit, tracking both inflows and outflows alongside price movements. The data highlights a sharp decline in exchange net flow on February 21, marked by a large red bar. This outflow led to a temporary dip in Ethereum’s price. However, the price quickly stabilized and continued its upward trend.

Market Reactions and Price Movements

The influence of these exchange activity is reflected in the price swings of Ethereum. The price of Ethereum in US dollars is shown by the black line on the chart. Despite the short-term volatility, it displays an overall increasing trend.

The February 21 outflow caused a brief decline in Ethereum’s value. However, the price recovered as Bybit resumed accumulating ETH. By February 23, the price had reached approximately $2,771. This recovery suggests that large exchange outflows influence market liquidity and price fluctuations.

Green bars in the latter part of the chart represent sporadic inflows. Though smaller than the February 21 outflow, these inflows contribute to a stabilizing trend. The market responds swiftly to liquidity changes, indicating heightened trading activity.

Significance of Bybit’s Moves

Over-the-counter (OTC) transactions in cryptocurrency markets are shown by Bybit’s recent acquisitions. Large purchases can be made through OTC transactions without affecting market prices.  Exchanges can replenish reserves using this tactic without experiencing undue volatility. Furthermore, Bybit’s net inflows point to a possible bull market for Ethereum. Stronger institutional interest and sustained confidence in ETH may be shown by increased exchange holdings.