- Online broker eToro is struggling to keep up with “unprecedented demand” for cryptocurrency
- The platform has notified users that it could impose restrictions on cryptocurrency trading over the weekend
- Possible restrictions include limiting the amount of cryptocurrency exposure a user can have, or even temporarily suspending the ability, or limiting buy orders
eToro notifies users that it might impose crypto trading restrictions over the weekend
The cryptocurrency market is in the middle of a full-blown bull run, and businesses that offer cryptocurrency trading are struggling to keep up with the massive demand for crypto assets. eToro, a major broker that supports cryptocurrency trading alongisde other assets like stocks, ETFs and commodities, says it might impose some limitations on cryptocurrency buying over the weekend if the demand doesn’t cool off. As reported by Bloomberg, eToro told its customers via email:
»The unprecedented demand for crypto, coupled with limited liquidity, presents challenges to our ability to support BUY orders over the weekend. In light of this, it may be necessary for us to place limitations on crypto BUY orders over the weekend.«
According to eToro, weekends »represent the greatest challenges« when it comes to the notorious volatility of the cryptocurrency markets.
Depending on market conditions, eToro could employ different measures. The platform could place a temporary limit on how much exposure to a crypto asset each clinet could have, or put limits on buy orders. The exchange also warned users that bid/ask spreads could be »much wider« than usual.
Bloomberg reports that eToro is seeing a 25x increase in its cryptocurrency trading volumes when compared to January last year.
Recently, eToro closed marg1ned cryptocurrency positions held by its Europe-based custromers and raised its minimum deposit limit for new users from $250 to $1,000 in an effort to keep demand at a level that’s manageable for the platform.
Even dedicated cryptocurrency exchanges like Coinbase and Binance have recently been experiencing technical issues as traders flooded their platforms.
On January 8, Bitcoin was trading at its highest price ever as the world’s top cryptocurrency almost reached $42,000. After this peak, the cryptocurrency retraced all the way down to $30,500 by January 11, showcasing that rapid price drops are a possibility even in the middle of a bull market.
Bitcoin has been performing very well today, gaining 10.7% and reaching a price of around $38,500.
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