Coinbase Crash Happens Because Traffic Increases Suddenly

Key Points:

• Coinbase crash happened amid Bitcoin’s price surge, leaving users unable to access their accounts.
• The surge in Bitcoin’s demand, driven by the introduction of US spot Bitcoin ETFs, led to a 40% price rally this month.
• CEO Brian Armstrong attributed the outage to a surge in traffic overwhelming Coinbase’s infrastructure.

Today, as Bitcoin’s price surged, Coinbase, a leading cryptocurrency exchange, faced a significant outage, leaving numerous users unable to access their accounts.

Read more: Coinbase Review: Top Trading Platform With Many Supported Features

Coinbase Crash During Bitcoin Surge: Users Locked Out

The Coinbase crash coincided with a sharp uptick in trading activity, with Bitcoin briefly surpassing $64,000. The surge in demand for Bitcoin, driven by the recent introduction of US spot Bitcoin ETFs, led to a 40% price rally this month, reminiscent of the cryptocurrency’s peak in 2021.

Coinbase’s history of outages during traffic surges prompted humor on crypto community, with users joking about the exchange’s technical difficulties as a bullish market indicator.

Confirming the Coinbase crash, the exchange assured users that their assets were secure and promised updates on the situation. CEO Brian Armstrong attributed the outage to an overwhelming surge in traffic that strained the exchange’s infrastructure, resulting in connectivity issues for many customers.

Following the outage, Bitcoin’s price dropped sharply from $64,000 to $59,600, erasing most of the day’s gains. Coinbase has faced similar outages during periods of market volatility in the past, drawing criticism from users and industry observers.

Hacking Concerns Emerge as Coinbase Faces Technical Difficulties

Some suggested that the Coinbase crash could signal a resurgence of retail interest in the market, reminiscent of the exchange’s outages during the 2017 bull run, while others raised concerns about potential hacking incidents.

At the time of reporting, Bitcoin’s price had recovered slightly to $61,250, indicating ongoing resilience in the market amidst the technical challenges faced by exchanges like Coinbase.