Cryptocurrency exchange eToro has warned customers that trading limits may be put in place due to a surging demand for cryptocurrencies.
Bitcoin may have crashed by over $10,000 in a single day this week, but growing demand for cryptocurrencies has surged to such a height that eToro has had to warn customers to temper their trading expectations on the exchange.
“We are seeing extreme conditions in crypto markets,” Katie Evans, global PR and communications manager at eToro, told Decrypt, adding, “If the demand for crypto continues we might once again see liquidity issues in crypto markets.”
In the first 11 days of the year, eToro had over 380,000 new users register with the exchange.
There are two key factors that affect Bitcoin’s price: supply and demand. And while the available supply has been shrinking, demand has been rapidly going up.
Institutional investors and companies like MicroStrategy have been plowing into the market, buying up huge quantities of Bitcoin—increasing the demand. At the same time, data shows that the amount of Bitcoin available on exchanges has been declining massively. And this is already affecting the market.
“Bitcoin is in a supply and liquidity...
“Our experience of the 2017 crypto rally means that we understand the possible consequences of extreme volatility in crypto markets,” Evans said, adding, “We want to ensure that our clients fully understand the possible risks.”
The risks might include the fact that Bitcoin’s price appears to be in a precarious position, recovering up to near all-time highs after dropping by $10,000 earlier this week.
Some Bitcoiners believe the cryptocurrency is back where it was in early 2017, when several price corrections paved the way to what became what was then an all-time high in price.
BTC retracements and dips during the 2017 bull run ranges around 30-40%. Expect the same during this bull run. Great time to buy on the lows! #BTC$BTC#bitcoinpic.twitter.com/Y1R0F7S9SA
Texas sheriffs used power tools this week in retrieving $32,000 from a Bitcoin ATM after a Jasper County family said they were scammed out of funds, according to local law enforcement.
The family said it had lost $25,000 to the fraudsters.
An image shared by the Jasper County Sheriff’s Office on Facebook shows sparks flying as an official uses what appears to be a circular saw to crack into a Bitcoin Depot kiosk. Other images show stacks of hundred dollar bills, evidence bags, and a gas station...
The price of Bitcoin was little changed on Friday as U.S. Federal Reserve Governor Christopher Waller argued that the U.S. central bank could start lowering interest rates as early as July.
Bitcoin was recently changing hands at $104,300, flat over the past day and down 0.6% since Israel and Iran began exchanging missile attacks a week ago, according to crypto data provider CoinGecko. Ethereum was flat over the past 24 hours to trade just around $2,500, while Solana ticked up slightly.
With infl...
USDC issuer Circle was buoyant in pre-market trading Friday, climbing above $236 ahead of the opening bell. That put it ahead of the $235 price target set by Wall Street research firm Seaport Global, which initiated coverage of the company today with a buy rating.
But once the bell rang, the company's stock, which trades on the NYSE under the CRCL ticker, settled and is currently changing hands around $228, or 14% higher than its previous close.
Seaport announced that it was initiating coverage...