Leading cryptocurrency exchange Coinbase crashed Wednesday as Bitcoin’s price erupted to two-year highs, leaving many users unable to access their accounts.
TLDR
- Coinbase suffered an outage as Bitcoin price surged past $64,000 on Feb 28th
- CEO cited a “large surge of traffic” overwhelming systems amid increased trading volume
- Some users saw zero balances and errors when buying/selling during disruption
- Bitcoin price plunged shortly after from around $64K down to $59.5K
- Coinbase has faced criticism over past outages happening amid volatile market conditions
CEO Brian Armstrong pinned the ‘significant outage’ on a tidal wave of traffic that overwhelmed Coinbase’s infrastructure. The sudden influx of users flocking to buy, sell, or trade Bitcoin during its price run-up to $64,000 crippled the exchange.
We are dealing with a LARGE surge of traffic – apologies for any issues you encounter. The team is working to remediate.
— Brian Armstrong ????️ (@brian_armstrong) February 28, 2024
Some customers encountered empty account balances or error messages when attempting transactions, while Coinbase’s websites and mobile apps were largely inaccessible at the peak of the disruption.
“We are aware that some users may see a zero balance across their Coinbase accounts and may experience errors in buying or selling. Our team is investigating this and will provide an update shortly. Your assets are safe,” the exchange stated amid the chaos.
Armstrong later confirmed via tweet that Coinbase was “dealing with a LARGE surge of traffic” and working to “remediate the situation.”
We are aware that some users may see a zero balance across their Coinbase accounts & may experience errors in buying or selling. Our team is investigating this & will provide an update shortly. Your assets are safe.
You can track this incident at https://t.co/a3pl4WiDhZ— Coinbase Support (@CoinbaseSupport) February 28, 2024
But the damage was already done. Bitcoin’s price reversed sharply as the outage unfolded, plunging from daily highs around $64,000 down to $59,500. The wild swing lopped off nearly all the gains from Bitcoin’s 11% morning moonshot.
And it’s not the first time a Coinbase crash has coincided closely with crypto market volatility. The exchange has repeatedly buckled under heavy trading volumes, drawing outrage from users who’ve found themselves locked out during periods of extreme price swings.
Despite Armstrong’s assurances that the company quickly addressed Wednesday’s incident, concerns linger over Coinbase’s reliability during main street manias for crypto trading. And the latest outage threatens to further blemish public confidence in a platform striving to make cryptocurrency accessible for the everyday investor.
Yet Bitcoin’s price displayed noteworthy resilience even as its main gateway to the mainstream suffered downtime. After initially reeling from the Coinbase disruption, BTC maintained heavy buy support above $60,000.
The dynamic underscores the growing strength of Bitcoin’s bull run in 2024. Driven by an incoming supply shock coupled with greater institutional adoption, Bitcoin once again appears unstoppable as investors look ahead to the crypto king possibly conquering its all-time price peak at $69,000 hit in late-2021.
