According to Bloomberg News, investors on the trading platform eToro have so much demand for Bitcoin and other cryptocurrencies to purchase, so that the platform reminds customers that users’ purchase orders may be restricted.
eToro said in a recent email to customers:
“Investors’ unprecedented demand for cryptocurrencies, coupled with limited liquidity, has challenged the platform’s support for buying orders on weekends. In view of this, we may need to limit buying orders on weekends.”
Bitcoin surpassed $40,000 last week, creating a record high, but then it pulled back sharply, but investor demand for digital currencies has not weakened. The Bloomberg article emphasized that, unlike stocks, the cryptocurrency market is trading 24 hours a day, 7 days a week, and the trading volume on weekends surges because investors have more free time to participate in market transactions.
An eToro spokesperson said on Wednesday:
“We are informing customers in advance that there may be restrictions on buying orders. We obviously hope that there is no need to implement any restrictions, but the current crypto market is very volatile and the weekend brings us the biggest challenge.”
According to the email, if eToro implements restrictions, it may set a temporary maximum risk exposure for each encrypted asset for each customer and temporarily prevent customers from placing new buying orders. Last week, due to the sharp increase in market risks, the company suspended margin trading services for European investors.
Facing the current round of Bitcoin’s rise, eToro, which has a 13-year history and 17 million users, did not expect the market to react like this. In the last 11 days, 380,000 new accounts have been opened on eToro, and its cryptocurrency trading volume is 25 times that of the same period in 2020.
The market seems to be experiencing a seller’s liquidity crisis. Netizen Wages to Freedom said: “I believe that the recent 25% correction is due to excessive buyer demand. Bitcoin prices have fallen on exchanges such as Coinbase, Gemini, eToro, and Binance that have a large amount of buyer demand. When trying to buy the bottom of $31,000, the exchange didn’t accept my payment at all.” Some netizens left a message saying that they couldn’t even log in to their exchange account for a few hours.