Exchange platform eToro is struggling amid surging demand for crypto, sending an email to all users warning of possible trading limitations this weekend.
Israel-based exchange platform eToro is struggling to keep up with the demand from crypto traders according to an email sent to users earlier today.
“The unprecedented demand for crypto, coupled with limited liquidity, presents challenges to our ability to support BUY orders over the weekend.”
As a result, the platform is warning of “possible limitations to crypto BUY orders” and that “spreads on crypto assets may also be much wider than usual.”
— CRYPTO KOALA (@Cryptokoala_Aus) January 13, 2021
EToro has become a victim of its own success. Yesterday marketing manager Brad Michelson revealed that in the previous 11 days, 380,000 new users had opened accounts and that trading volumes had surged 25 times higher than the same time in 2020. As of January 9, eToro boasted more than 17 million registered users.
Quantum Economics founder Mati Greenspan — formerly a market analyst for eToro — told Cointelegraph that the warning notice was “a symptom of a potential upcoming liquidity crunch.” He advised users on Twitter against trying to move funds off the platform.
I wouldn’t be moving anything right at this time. Buckle up bro.
— Mati Greenspan (tweets ≠ financial advice) (@MatiGreenspan) January 13, 2021
Should eToro implement the foreshadowed measures, users will be restricted on their maximum exposure per cryptocurrency, and potentially be unable to place new buy orders. Greenspan explained that it simply means some users “might need to wait in order to buy in.”
Last week, the exchange restricted European users from margin trading due to increased market risks and increased the minimum deposit amount by 400% to $1,000 in an attempt to get on top of new user registrations.
Other exchanges are also seeing surging trade volumes, with Coinbase’s daily volume reaching $9.5 billion on January 12, up more than 50% from its previous all-time high of $6.5 billion on January 9. Binance has also powered past its peak of $23.7 billion, recording over $30 billion on January 12.
It is only a matter of time before we see other exchanges start to hit liquidity issues Greenspan believes, saying it is “highly likely” that we will see this situation occurring on other platforms in the near future.
Concerns around the limited Bitcoin supply available have risen to the foreground over the last six months with investment giant Grayscale snapping up Bitcoin at an alarming pace. The firm now has $20 billion under its control as its Bitcoin (BTC) buys outstrip mining production by almost three to one throughout December 2020.
Bitcoin’s top 100 richest addresses have snapped up almost 350,000 more BTC in the last 30 days.
The top 100 richest Bitcoin addresses are increasingly bullish, accumulating 16% more Bitcoin over the last 30 days.
In total these addresses added 334,000 more Bitcoin to their bags, or around $11 billion worth.
The majority barely reacted to Bitcoin’s recent price drop from $41,000 to below $33,000. Only seven addresses conducted a transfer out of the wallet since the most recent all-time-high on January 10.
Of the addresses that have transacted in the last 30 days, only eight of them have more than ten transactions to their name since December 12.
Perhaps surprisingly, many of the largest addresses are yet to see a bull run, with eight of the top ten having received their first transaction later than September 2018. The newest in the top 100 is only two months old.
They’re not all individual whales however. The addresses include at least ten controlled by exchanges such as Huobi, Binance, Bittrex, and Kraken. The rest are believed to belong to a mix of institutional investors and wealthy hodlers, with it being almost impossible to differentiate between two. What is clear though, is that the big guys are not easily influenced by price or sentiment.
In order to make it into the top echelon of Bitcoin addresses, one must hold more than $336 million in BTC. Around $2.2 billion is required to hit the top ten.
Addresses within this prestigious list have often attracted attention for various reasons, including one that is believed to belong to Satoshi Nakamoto himself.
The third wealthiest address, with an untouched 94,506 BTC, created headlines back in September 2019 after Glassnode reported that 73,000 of the BTC in the wallet had been transferred from Huobi. It was presumed to be the richest non-exchange address.
According to BitInfoCharts, 64 of the top 100 have never seen a single satoshi transferred out.
These addresses, which currently control more than 2.5 million BTC (13.5% of circulating supply) with a value of almost $85 billion dollars, include 15 dormant addresses. Eleven are more than nine years old. Although no one can prove that the 300,000 BTC held by these addresses have been lost, most assume so.