Mille Lees Mille Lees, Wednesday 18th March 2020, 10:11 AM CET
retail investors, fintech working group

Financial institutions operating in the blockchain industry have begun unloading their respective Bitcoins. These substantial periods of selling extend towards Stocks and Cryptocurrencies. It’s allowed for retail investors to experience decreased prices, seeing significant volumes of purchasing these particular products. It should be mentioned that Bitcoin is selling considerably higher than the remaining stocks or cryptocurrencies. Retail brokerages engaging with this Selling & Buying Period are experiencing brisk business for the 1st time in years.

The Chief Executive Officer for River Financial, Alex Leishman, provided his two sense regarding this situation. News outlets in San Francisco were requesting his remarks, with Alex maintaining one of the most notable firms in the Bayside-City. He stated: “About 20% of all of our clients have signed up this month. We’re seeing record interest from first-time bitcoin buyers.”

It should be mentioned that River Financial has a small clientele base at ten thousand accounts. Their prominence throughout San Francisco applies towards continued valuations in profit that aren’t altered. This could all change for River Financial with the recent surge in volume, prompting increased client acquisition rates. Alex Leishman’s firm isn’t the first to experience this surge, with the Gemini Exchange having similar valuations. This was confirmed after the Head of Communications, Carolyn Vadino provided statements to NYC Financial News Outlets. She mentioned: “During this time of market uncertainty, we continue to expect to see higher volumes than normal.”

America’s rapid surge in the Selling & Buying of Bitcoin can be compared to the increase in Over-the-Counter Trading in Latin America. This variation of trading assists liquidity to several nations worldwide, allowing for purchasable OTCs for a determined price. Individuals connected to this market have expressed that valuations have increased by 3x their standard volumes. This means that consumers in notable cryptocurrency markets have begun hedging or liquifying their funds through OTC Brokerages. This is seeing an influx of Bitcoin and other cryptocurrencies for these brokerages, prompting increased sales to North America and the United Kingdom.

Imbalance

Insiders with Over-the-Counter Brokerages have notified reporters that heavily leveraged loans with large-scale companies have prompted the increased rate of selling. With the addition of retail investors purchasing excessive levels of Bitcoin, it’s inspiring an imbalance in the North American and Latin American markets. Most financial analysts in these jurisdictions hope that standard valuations with OTCs will return, it’ll create long-lasting damage otherwise.

It should be noted that retail investors are purchasing, trading and leveraging Bitcoin at faster rates than the amount being sold. This could create substantial pressure onto exchanges to locate new products, with the potential for the market to be altered in ways nobody thought possible. Some financial analysts believe that the outcome of last weeks Selling & Buying rates will play out throughout several months. Different strategies and products will be required to create sustainable valuations of profit for various exchanges.

Bitcoin Safe

Volatility

There have been multiple exchanges to confirm that they’ve been overloaded with extreme volatility over 72-Hours. Some firms reported that their exchanges had their networks crash, creating hour-long outages. It was suspected that firms like BitMex and OKEx, which saw an influx of purchasing, facilities more than $10 billion in Bitcoin Futures. This would’ve occurred on March 12th, which is prompting these online exchanges to implement Back-End Selling Strategies. This will ensure that unprecedented traffic would crash networks for top-tier investors and traders. Digital exchanges that don’t account for the potential volatility and effects on their products will find themselves challenged to implement long-term sustainability.

The Financial Marketing Director for OKEx, Lennix Lai, provided his remarks on this situation. He noted that platforms would be automatically halted depending on the rate of volatility with their exchange moving forward. The official statements read: “If one major exchange has a circuit breaker while the others keep on trading, the sell-off pressure will transfer to another exchange. You can’t choose when volatility hits and the orders start coming in. Almost all of our orders have been buying orders. We need to make sure the prices we are promising users don’t lose us money but are fair. In our role as a liquidity provider, we continue to see both buying and selling from our counterparties. Including those who have been sitting on the sidelines for a while using this as an opportunity to re-engage in the market.”

Mille Lees

Author: Mille Lees

Millie has been with whichbroker.com since the start. She has a passion writing financial news after an internship at Bloomberg London. Millie's background in journalism and politics means she has an eye for a good story. Millie graduated from LSE and has a masters from Durham University England. Mille Lees can be contacted at [email protected], View all posts by Mille Lees

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