Not long after Bitcoin’s value surpassed $62,000, its highest level since 2021, Coinbase serious disruptions and issues on Wednesday afternoon that left some customers unable to log in at all and some user accounts showing $0 balances.
Crypto enthusiasts were outraged on social media after being unable to access their funds on the largest cryptocurrency exchange in the United States. Furthermore, it is frustrating that some customers have reported errors when buying and selling.
The continued demand for Bitcoin is seen as the main reason behind the sudden crash of the Coinbase app. The leading cryptocurrency saw a 40% price increase this month due to US bitcoin spot ETFs. According to reports, this was the biggest monthly gain the digital asset had posted since December 2020.
Bitcoin price action today
With a wild start to March, Bitcoin’s unprecedented activity positioned it for its biggest monthly gain in more than three years on Thursday. Bitcoin is currently very close to reaching a new high due to the flow of money into publicly traded bitcoin funds, which is driving a significant increase.
Bitcoin nearing the $63k level today. Source: Coingecko
The world’s leading cryptocurrency briefly reached $64,000 (its first rise above $60,000 since November 2021) before partially reversing gains. According to Coingecko data, BTC was trading at $62,765. It rose 10% and 22% on a daily and weekly basis, respectively.
After dropping 64% in 2022, Bitcoin’s value has more than tripled since the start of the year. That represents a remarkable comeback after 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 into the exchange again, according to a statement from Coinbase, although users are still reporting issues with “certain payment methods” and problems sending and receiving money.
I had $3.6 million on Coinbase
and now it’s $0 lol
WTF IS HAPPENING? pic.twitter.com/BaV4pWjFo6
— Ash Crypto (@Ashcryptoreal) February 28, 2024
While he acknowledged that “some users may see a zero balance” on all their Coinbase accounts and may encounter issues while buying or selling, Coinbase reassured customers that their funds were safe. Additionally, the exchange clarified that there have been significant delays in fund transfers via the Ethereum ERC-20 network.
Coinbase, Binance and Kucoin are all disabled!! WTF is happening!!
— Kyle Chassé (@kyle_chasse) February 28, 2024
There are rumors of similar crashes on other major exchanges, such as KuCoin and Binance. But there is still no evidence to support these allegations.
The situation comes at a difficult time for Coinbase, as more inexperienced investors return to the cryptocurrency trading market only to find they appear to have no assets.
Disappointed in Coinbase for this guy.
It’s 2024, we have to get our affairs in order. 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 address such issues is infuriating members of the cryptocurrency community.
Featured image from Pixabay, chart from TradingView
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