BTSE, a cryptocurrency exchange and futures trading platform, has increased the limit for its over-the-counter request for quote (RFQ) due to increasing demand for Bitcoin in April, as RFQ is a trading system or tool used to overcome issues of price slippage and it is an electronic real-time message sent to liquidity providers connecting interested buyers or sellers.
It has been reported that the exchange said the limit, which has been changed from $100,000 to $1 million, represents a ten-fold increase resulting from growing investor demand in digital assets.
However, it comes at a time when Bitcoin’s continuous rally from its March 13 “Black Thursday” low of $3,850 saw prices reach as high as $9,463 on April 30.
NEW: @BTSEcom, a Dubai-based cryptocurrency exchange, has upped the limit for its over-the-counter request for quote (RFQ) due to April's surge in bitcoin demand.@Sebsinclair1989 reportshttps://t.co/NSVlHSTHpU — CoinDesk (@CoinDesk) April 30, 2020
Jonathan Leong, the CEO and Co-founder of BTSE, said:
“After being extremely undervalued throughout the greater part of March, bitcoin has made a full recovery in just one and a half months.”
“Approaching the halving, I see the outlook as very bullish.”
Moreover, Leong stated:
“We’re hearing directly from our users that bitcoin and other alternative forms of finance are increasingly in demand. Users are demanding this limit increase.”
As per the report, the quote is provided by a provider, in response to an RFQ by other market participants, i.e., buyers/sellers, as it is similar to the way trading pits on a stock exchange floor operate, where traders yell across the pit and seeking a market.
Likewise, BTSE aspired to raise $50 million in one of the first token offerings on the Liquid Network, the parallel system to Bitcoin created by startup Blockstream.
After completing its private sale in February 2020, BTSE offered 1 million BTSE tokens during their public token sale in March through the exchange.
Thus, according to Leong, the tokens sold out within the first four hours.