Online Platform eToro Called in Leveraged Crypto Trades When Bitcoin Price Peaked

A popular online brokerage abruptly curbed trading in cryptocurrencies just as bitcoin hit a record high, catching investors in one of the hottest corners of the market off guard. EToro, an Israel-based digital trading platform with global operations, told customers in Europe late Friday they had to close all margin trading in cryptocurrencies in a matter of hours, according to the company. Margin trades use borrowed money to amplify investments. The order came as bitcoin approached an all-time high of $41,962 on Friday, after more than tripling in 2020. Over the weekend, the world’s leading cryptocurrency went in reverse, shedding around a quarter of its value, and recently traded for $31,400, according to data from CoinDesk. The move by eToro shows the topsy-turvy world of cryptocurrencies, where rapid price swings—often with little or no catalyst—can surprise investors and brokerages that cater to them. With margin trading, as an asset’s value…

Read the original article here

IF YOU LIKED THIS ARTICLE CLICK SHARE