The bitcoin (BTC) industry is booming. Interest is growing and more and more parties are finding their way to their local broker or exchange. Good news for bitcoin companies, but the interest also has drawbacks.
The online broker eToro is warning their clients about a possible limit on bitcoin purchases through their platforms. If interest remains as it is now, they will have to partially turn off the money tap.
The company apparently cannot find enough BTC to sell. eToro will stop selling bitcoin in the Netherlands in 2021.
eToro is one of the first parties to publicly warn their customers about possible shortages. According to data from Glassnode, exchanges and brokers are facing a bitcoin liquidity crisis. There simply aren’t enough BTC to meet all the demand.
„The unprecedented demand for crypto along with limited liquidity is creating problems to fill all buy orders over the weekend,“ the company said in an email to their customers.
With a bit of bad luck, customers won’t be able to make unlimited purchases on Sunday.
It is still unclear what the maximum amount will be if the company has to take these measures. It is expected that especially the larger accounts will be affected, hobbyists with a small amount will probably not suffer.
eToro is a relatively large player and they are struggling to buy bitcoin to meet all the demand. The question is: who will follow? The battle for bitcoin now seems to be really fierce on a higher scale.
It is no coincidence that Grayscale has bought bitcoin again: the bitcoin fund has an additional 2,200 BTC in its coffers. The Bitcoin Trust Fund already has over half a million bitcoin under management and interest in their fund does not seem to be waning any time soon.