Bitcoin Buying Could Be Curbed This Weekend If Trading Goes Wild

(Bloomberg) – EToro warns clients that unprecedented demand for crypto coupled with limited liquidity may present challenges for supporting orders.By January 14, 2021, 2:55 AM GMT+8

Retail investing platform eToro Ltd. is fielding so much demand for Bitcoin and other cryptocurrencies that it warned customers they may encounter “possible limitations” filling orders.

“The unprecedented demand for crypto, coupled with limited liquidity, presents challenges to our ability to support BUY orders over the weekend,” the Israeli-British company said in an email to customers. “In light of this, it may be necessary for us to place limitations on crypto BUY orders over the weekend.”

The notice underscores how platforms are struggling to manage the surging volatility in the crypto market as Bitcoin skyrocketed to an all-time high of more than $40,000 last week. The digital coin has since dropped to around $35,500, but investors’ appetite for digital currencies is not waning. Unlike stocks, they trade 24 hours a day, seven days a week, and volume has surged on weekends when investors have more free time to play the market.

“It is our effort to give clients advance notice that there may be restrictions,” an eToro spokeswoman said Wednesday. “We obviously hope we will not have to implement any of these but the crypto markets are incredibly volatile at the moment and the weekends present the greatest challenges.”

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