Retail Crypto Buyers Bullish as eToro Struggles to Meet Demand

Retail trading platform eToro has warned its customers that it may not have enough crypto assets to meet current demand as prices surge.

Retail Crypto Buyers Bullish as eToro Struggles to Meet Demand
According to a recent notice from trading giant eToro, customers have been advised that there could be disruptions to its cryptocurrency trading services due to ‘unprecedented demand’. It went on to state that it is seeing ‘unprecedented conditions on crypto markets’ as Bitcoin prices and total market capitalization hovers just below their all-time highs. eToro officially launched its crypto trading platform and wallets in the U.S. in March 2019, so it did not experience the massive bull run of 2017 when most altcoin prices were much higher than current levels. Crypto Liquidity Squeeze “The unprecedented demand for crypto, coupled with limited liquidity, presents challenges to our ability to support BUY orders over the weekend.” The notice also stated that spreads on crypto-assets may also be much wider than usual, meaning that the difference between buy and sell prices will increase due to the liquidity squeeze. The notice was retweeted several times by industry observers such as video blogger Alex Saunders who called it the ‘halving effect’; Halving effect. @eToro unable to buy enough crypto to meet demand.