Bitcoin (BTC) Sells Off Following the Launch of Binance Margin Trading
The cryptocurrency market may have just become a whole lot more volatile after Binance, the world’s largest crypto exchange, launched its new margin trading service.
According to a recent blog post by the company, Binance has enabled margin trading for Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Binance Coin (BNB), Tron (TRX) and Tether (USDT) with up to 3x leverage.
“This is another step in providing an inclusive cryptocurrency trading platform catering to the needs of both advanced institutional traders and retail traders under the same roof,” said Binance CEO Changpeng “CZ” Zhao. “We are providing a new tool in the financial services and cryptocurrency markets to help amplify trading results of successful trades.”
Intriguingly, the launch of Binance’s margin trading coincided with a notable drop in the price of bitcoin and other major altcoins, although it’s unclear if the events are related.
Notably, CZ shared that more than 10,000 margin accounts were created and $15 million had been borrowed for trading within a matter of hours.
Over 10,000+ margin accounts have been enabled since the announcement this morning. Combined they have borrowed over $15,000,000 so far. https://t.co/SbsDtYimKK
— CZ Binance (@cz_binance) July 11, 2019
This number is likely to continue to rise in the coming weeks and months.
Image: Hektor Ehring Jeppesen / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.