HomeBitcoin NewsCircle Raises Minimum Purchase Threshold as OTC Bitcoin Trading Popularity Surges

Circle Raises Minimum Purchase Threshold as OTC Bitcoin Trading Popularity Surges


Investing in Bitcoin has become a lot more appealing as of late. For some users, they simply buy from exchanges, whereas others rely on third-party platforms. Circle, a firm backed by Goldman Sachs, is now doubling its minimum Bitcoin trade size. As of right now, the minimum ticket size is $500,000.

The decision by Circle is pretty interesting to take note of. Thanks to an increase in overall trading, the company decided to double the minimum Bitcoin trade size. While a limit of $250,000 was quite steep already, that number has now increased to $500,000. Jeremy Allaire claims this decision makes a lot of sense as of right now.

Circle is a hot Trading Solution

It is interesting to note how the overall cryptocurrency trading volume has dropped off a bit. The first few months of 2018 have not been kind to this ecosystem. This is in stark contrast to how Circle notes a massive increase in block trades. Over-the-counter trading is gaining a lot of popularity among institutional investors.

According to Allaire, Circle processes transactions of $100m and more. That in itself is rather spectacular and only confirms the interest in Bitcoin. Moreover, the minimum ticket size to trade Bitcoin will continue to increase as time progresses. Rising to $1m or more later this year is not entirely out of the question.

There’s a good reason why Circle is so appealing for OTC trades. Buying or selling large amounts of BTC on a regular exchange is not feasible. Doing so would trigger a massive shockwave across the orderbook and potentially crash the Bitcoin price. With OTC trading through Circle, that is far less of a problem. All of this paints a pretty positive future for Bitcoin as a whole.

Header image courtesy of Shutterstock


JP Buntinx
JP Buntinx
JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.

Upcoming Events

Most Popular