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Not long after the value of Bitcoin surpassed $62,000, its highest level since 2021, Coinbase had severe disruptions and issues on Wednesday afternoon, preventing some customers from signing in at all and causing some user accounts to reflect a $0 balance.
Crypto aficionados were furious on social media because they are unable to access their money on the biggest cryptocurrency exchange in the United States. Furthermore frustrating, some customers have reported errors when buying and selling.
The continuous demand for Bitcoin is seen as main the reason behind the sudden crash of the Coinbase app. The leading cryptocurrency had a 40% price increase this month as a result of US bitcoin spot ETFs. This was the biggest monthly gain the digital asset had seen since December 2020, according to reports.
Bitcoin Price Action Today
With a ferocious start to March, Bitcoin’s unprecedented activity has positioned it for its biggest monthly gain in over three years on Thursday. Bitcoin is currently very close to reaching a new high due to the money flooding into listed bitcoin funds, which is driving a significant increase.
Bitcoin nearing the $63k level today. Source: Coingecko
The world’s leading cryptocurrency briefly touched $64,000 (the first rise above $60,000 since November 2021), before partially reversing the gains. According to Coingecko data, BTC was trading at $62,765. It was up 10% and 22% on a daily and weekly basis, respectively.
After plunging 64% in 2022, the value of bitcoin has more than tripled since the start of the year. That represents a remarkable comeback from a slew of scandals and bankruptcies that had raised concerns about the long-term viability of cryptocurrencies.
Bitcoin market cap currently at $1.2 trillion. Chart: TradingView.com
Are Coinbase Funds Safe?
Meanwhile, customers can now log back into the exchange, according to a statement from Coinbase, although users are still reporting issues with “certain payment methods” and issues with sending and receiving money.
I had $3.6 Million on Coinbase
and now it’s shows $0 lol
WTF IS HAPPENING ? pic.twitter.com/BaV4pWjFo6
— Ash Crypto (@Ashcryptoreal) February 28, 2024
While acknowledging that “some users may see a zero balance” on all of their Coinbase accounts and may run into problems while purchasing or selling, Coinbase reassured customers that their money was secure. Additionally, the exchange made it clear that there have been significant delays in money transfers via the Ethereum ERC-20 network.
Coinbase, Binance, and Kucoin all down!! WTF is going on!!
— Kyle Chassé (@kyle_chasse) February 28, 2024
There are rumors of similar crashes on other significant exchanges, such as KuCoin and Binance. But there is still no proof to support these allegations.
The situation comes at a difficult moment for Coinbase, as more inexperienced investors are returning to the market for cryptocurrency trading and discovering they appear to have no assets.
Disappointed in Coinbase for this man.
It’s 2024, we must have our shit together. pic.twitter.com/VioBxw8am5
— MASON VERSLUIS (@MasonVersluis) February 28, 2024
The disruption at Coinbase is not unprecedented; in every bull market, there are technical problems that arise when the platforms cannot handle the volume of buying and selling. As a result, the lack of technological safeguards on sites like Coinbase to handle such problems infuriates members of the cryptocurrency community.
Featured image from Pixabay, chart from TradingView
