Coinbase Goes Down; Issues with Buys Giving A ‘False Bearish Signal’
Volatile markets are making cryptocurrency exchanges shut down yet again.
It doesn’t take much for the exchanges to go down, as we have seen all these years. A slightly more than usual bout of movement in either direction and all the exchanges become unusable.
The same was happening since yesterday when the market started its deep pullback. On Friday, BTC/USD made a new all-time high at $42,000, only for the leading digital asset to go down to nearly $30,000 today. Altcoins also went down hard as well, with ETH touching nearly $900.
In the week hours of Monday, Binance CEO Changpeng Zhao tweeted out record volume and the exchange having some issues. He said,
“ATH system traffic again. Systems holding up so far, not perfect, slightly higher latency in some regions.”
But much bigger issues are being seen on San Francisco-based exchange Coinbase at 06:46 PST on Jan 11, 2021. The exchange said,
“We’re investigating an issue impacting transactions on Coinbase.com and the mobile apps. The record of a recently initiated transaction may be delayed in showing up in your Coinbase account. There may also be some issues with some buys completing on the platform.”
The exchange further asked its users to “not re-submit your transaction – it will result in duplicate activity.”
— Hsaka (@HsakaTrades) January 11, 2021
This resulted in the price of digital asset trading about $350 lower on Coinbase than other exchanges. On-chain analyst Willy Woo noted,
“Buying demand is not coming in on Coinbase because buys are not registering. Coinbase price is used in a basket of exchange prices to get an index price that futures markets trade on. Gives a false bearish signal to algos, which will trigger further sell off.”
It has become embarrassing for an exchange that handles so much volume that in these eleven days in January, Coinbase has encountered some sort of problems seven times, which means only 37% resistance-free service so far.
Other exchanges that crashed during this much activity also involved Kraken and derivatives platform Deribit, funding rates on which went 0.5% for Bitcoin perpetual contracts and a whopping 0.92% for ETH perpetual contracts.
The market is slowly making its way up, but it’s to be seen if another pullback is in order or we finally find support.