Bitcoin Scarcity: eToro Warns Users Over Impending Disruptions In Cryptocurrency Trading

Bitcoin Scarcity: eToro Warns Users Over Impending Disruptions In Cryptocurrency Trading

eToro, on the largest trading platform, recently notified its users that there could be disruptions in their cryptocurrency trading services due to extreme demand. The exchange went on to explain that it was experiencing “unprecedented conditions on crypto markets,” as Bitcoin (BTC) prices and the cryptocurrency market cap are close to their highest levels in history.

eToro, launched its crypto trading platform in the US in March 2020, effectively missing the bull rally of 2017, when most bitcoins were at higher levels than currently.

The exchange also noted that spreads on crypto-assets could become wider-than-normal as liquidity plummets. Industry observers highlighted that this could be as a result of the “halving effect.”

The exchange may try to limit it’s users’ exposure to crypto-assets by fixing a maximum exposure amount per asset per client.

Meanwhile, eToro Marketing Manager, Brad Michelson, noted that just over the past eleven days, eToro has opened 380,000 new accounts, and its crypto trading volume is operating 25x higher than last year.

Just a few days ago, the exchange placed a minimum deposit requirement on new users to accommodate its existing customer base of about 17 million.

Former Senior Market Analyst at eToro and founder of Quantum Economics, Mati Greenspan, noted that it is very likely that the issue being witnessed on the exchange will be replicated on other platforms as Bitcoin is projected to hit a six-figure price tag this year.

BTCUSD – Hourly Chart

Key BTC Levels to Watch — January 14

Bitcoin is well on its way to full recovery from its recent crash. After several hours of consolidating between the $37,827 previous resistance and the $37,000 support, the cryptocurrency staged a decent rally to the upper-$39,000 area. However, the benchmark cryptocurrency has entered into yet another consolidation below the $39,800 resistance.

That said, we expect to see a full recovery in the coming hours and days. On the flip side, a fall from its current level will get repelled by the $37,827 support where our ascending channel also is.

Meanwhile, our key resistance levels are at $40,000, $41,200, and $42,000. While our key support levels are at $37,827, $36,500 and $35,000.

Total Market Capitalization: $1.06 trillion

Bitcoin Market Capitalization: $731 billion

Bitcoin Dominance: 69%

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.