Victims of their success? Cryptocurrency-related services on the eToro exchange are seeing an unprecedented influx. So much so that the company issued a warning regarding the state of its Bitcoin (BTC) and altcoins stocks …
Cryptocurrencies: eToro faces unprecedented demand
The news has been relayed on the cryptosphere: eToro faces such high demand for cryptocurrencies that it cannot guarantee purchases for the coming weekend. In any case, this is the content of an email sent to eToro customers , which explains:
“We are facing unprecedented conditions when it comes to crypto markets, which has led to increased demand from eToro users, both old and new. […] We would like to alert you to possible limitations coming this weekend with regard to buy orders . “
The news is not entirely a surprise, as eToro’s chief marketing officer Brad Michelson said yesterday that the influx of new users has been colossal:
“Just in the last eleven days, eToro and eToroUS have opened 380,000 new accounts , and their cryptocurrency trading volume is 25 times higher than last year. “
Retail investors take to cryptocurrency
This of course shows that retail investors are in the midst of “FOMO” and are jumping into cryptocurrency with the hope of making significant gains. Responding to Mati Greenspan, a former eToro analyst, Adam Back also went with his little comment:
“Sold out, it’s funny. But in reality the price goes up, until the weaker holders sell. And there are sources from other exchanges, so you have a spread . Or someone with multiple accounts on multiple exchanges can opportunistically do arbitrage. “
A „bullish“ signe?
There is no doubt that eToro will probably find the necessary cryptocurrencies very quickly to provide them to these users. But the sign is particularly bullish: it shows that a mass of retail users are ready to buy Bitcoin (BTC) and cryptocurrencies , even as prices continue to climb to highs. In addition, we note that strong demand in the face of lower liquidity generally leads to a rise in prices.
What is certain is that Bitcoin (BTC) already seems set to ignore the correction it has experienced in recent days: it is currently close to $ 38,000 , with a capitalization that again exceeds $ 700 billion. .