Crypto Exchange Coinbase Fails To Stay Operating During Explosive Bitcoin Volatility

Tony "The Bull" Severino

5 years ago

2 mins read

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The popular crypto exchange Coinbase has come under scrutiny recently by the greater cryptocurrency community, after widespread frustration over system outages during peak Bitcoin volatility has boiled over.

What’s causing the issues and why can’t Coinbase keep up with the meager crypto demand currently, and what does this mean for the next bull market if and when it happens?

Coinbase Can’t Seem To Keep Their Platform Stable During Bitcoin Volatility

Last night, Bitcoin price jumped by over $600 in less than an hour, just ahead of the first daily close of June 2020. Also during this time, the popular San Francisco based cryptocurrency platform experienced a system outage that left users unable to trade the volatility.

What's wrong with Coinbase? pic.twitter.com/R6rwzHSgS3

— Zack Voell (@zackvoell) June 2, 2020

Volatility is what brings traders profits, so being unable to access the trading platform where they keep their Bitcoin makes the platform far less appealing.

Thus far, it’s remained amongst the most popular fiat on-ramps for US crypto investors, who dominate the lion’s share of the overall market.

The cryptocurrency community erupted in frustration, wondering why one of the most dominant and longest-standing crypto platforms can’t get its act together.

Speaking of a rigged system…you have one job to do @coinbase You’ve had years to fix it. #shameful #rigged #oneofthem #dumpcoinbase pic.twitter.com/GCUCG2xeoT

— RE₿ECC₳ 🍋 Ⓜ️🕸🛡️ (@I_Make_Lemonade) June 1, 2020

Traders everywhere voiced their annoyance over the lack of access, while analysts questioned why this was happening at all given the relatively low levels of interest in cryptocurrencies and Bitcoin at the moment.

How Will This Impact the Next Bull Market If The Most Popular Fiat Onramp Can’t Clean Up Its Act?

This wasn’t the first Coinbase outage in recent weeks, which has only added fuel to the fire of already upset traders.

What’s more concerning, however, is the fact that Coinbase can’t keep up with current levels, then how will they expect to support the influx of users during the next bull market?

Dear @coinbase, I ask this with much respect – How does an exchange with an $8 billion valuation crash every time Bitcoin pumps 5%?

I genuinely would like to know

— Dan Gambardello (@cryptorecruitr) June 2, 2020

Coinbase CEO Brian Armstrong was famously quoted for stating that bear markets are used to build for the next bull market.

“We use the down cycles to build a strong foundation so we can thrive in the next growth cycle,” he said, in a now-deleted tweet.

Somewhere along the lines, this effort to build may have been lost, and what remains is a platform that appears to be woefully underprepared for any increase in its userbase.

The crypto market is jam-packed with competitors, and leadership roles like what was seen with BitMEX can easily fall from grace. Coinbase remains one of the most important and popular fiat onramps in the crypto market, but if system outages continue to plague traders, the throne will soon be challenged.

Can Coinbase retain the crypto crown for the next bull market, or will system outages continue to leave them looking like the court jester instead?

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.