Crypto Exchanges Running Out of Bitcoin and Ethereum
Some crypto exchanges are now struggling to keep up with surging demand for crypto. This week there have been reports that exchanges are beginning to run out of ether with some reserves plunging 27% within a 48 hour period earlier this week. Some analysts predict Ether may soon hit a new all-time high due to this fall in ETH reserves.
To combat liquidity issues, Israel-based exchange platform eToro has warned customers that it might start to limit crypto buying if demand and volatility continue, stating “"The unprecedented demand for crypto, coupled with limited liquidity, presents challenges to our ability to support BUY orders over the weekend.
In light of this, it may be necessary for us to place limitations on crypto BUY orders over the weekend." Last week, eToro increased the minimum deposit amount from $250 to $1,000 in an attempt due to a rush of new user registrations and ongoing liquidity issues.
It's likely only a matter of time before other exchanges start to hit similar liquidity issues if demand continues. What does this mean for the market?
These are primarily positive indicators and shows that demand for crypto continues to grow. Unfortunately, it also looks like it might be getting harder for new investors to buy if more exchanges begin to increase minimum deposits and limit buy orders. Visit us at cashonlypod.com