Buying at its high from investors and selling from Institutions

Buying at its high from investors and selling from Institutions

In the present coronavirus-driven global sell off, retail investors of cryptocurrency is doing most of the buying where institutions are unloading bitcoin along with stocks. The CEO of River Financial, the group was founded as a partnership of professionals, said they have done more volume in March than all cumulative volume previously. They are seeing an increment of bitcoin buyers indeed. The group has only 10,000 active user accounts but it is facing a volume surge and reportedly New-York based crypto exchanges saw a surge in activity over the weekend. High volume is highly expected in this critical market condition. As per information, an over-the-counter desk has seen three times the normal buy orders since the price dropped drastically on Thursday. But there are a number of people who are long that are trying to get out.

Disequilibrium

The whole market is becoming off as retail traders are buying up so aggressively. Companies with heavily leveraged loans played into the wave of institutional investors selling off, an anonymous OTC trader said. A complexity will start working among liquidity providers in benefiting from arbitrage, if people are buying than selling, trading or leveraging. How long will the crisis last and how much pressure will exchanges face to find new market makers in unknown.

Circuit breaker

According to a report came it is known that analytics firm Skew, BitMex and OKEx alone facilitated about $10 million in bitcoin future trades in March. No sense is made for major exchanges to concretize a ‘’circuit breaker’’ which is a system that automatically terminates trading on their platform on the off chance instanteously falling prices mortifies the system. Transferring of pressure to another exchange is done when one major exchange has a circuit breaker while the others keep on trading. On the others side brokers who are small in size are preparing their back-end selling mechanisms for unprecedented traffic. Exchanges have maximum buy orders and the prices exchanges are promising users should be fair. Reportedly, traders at OTC desk Cumberland don’t appear to be concerned about long term instability. Usually they see both buying and selling from their counterparties as a liquidity provider.

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