EToro, the retail investment platform, faced overwhelming demand for bitcoin and alerted customers to “possible restrictions” on order execution. Bloomberg writes about this with reference to a letter sent by the firm.
“The unprecedented demand for cryptocurrencies, coupled with limited liquidity, presents challenges to our ability to support PURCHASE requests for Bitcoin over the weekend,” eToro writes. “In this regard, we may need to impose restrictions on applications for the PURCHASE of cryptocurrencies on the weekend.”
The company said it had sent out a notice to customers in advance and hoped they would not have to impose restrictions, “but the cryptocurrency market is extremely volatile at the moment, and the weekend is the hardest.”
If restrictions are imposed, clients will not be able to purchase cryptocurrency more than the set volume and may temporarily lose the opportunity to place purchase orders. Last week, eToro already limited the possibilities for margin trading in cryptocurrencies, explaining this by the high risks of a volatile market. Over the past 11 days, 380,000 new users have registered on the platform, and trading volumes in digital assets have exceeded 25 times the values of the same period in 2020.
Previously, the restriction of orders for purchase occurred on the American cryptocurrency exchange Coinbase, which was one of the factors behind the decline in Bitcoin from historic highs to the level of $ 30,000 …
“Sales on the spot market started at about $ 38,000, then partially let Coinbase down by not registering buy orders, which is why the price on it was $ 350 lower than on other exchanges. This pushed down the index price that futures exchanges use to calculate margin funding, triggering a bearish debacle in speculative markets, ”said analyst Willie Wu.
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