Crypto Exchange Coinbase Can’t Keep Up with Bitcoin (BTC) Rallies
The US-based exchange, Coinbase, went down for about an hour yesterday, the day bitcoin shot past $10,000. The world’s leading cryptocurrency spiked about 10% to as high as $10,430.
As per the Coinbase Status Page, At 16:14 PDT, Coinbase observed increased latency and started investigating the issue. 45 minutes after that, the exchange resolved the incident by implementing the fix.
The price of bitcoin has now gone back down to $10,100.
Coinbase informed this through Twitter announcing “intermittent downtime” that made people upset. The San Francisco-based going down has become synonymous with bitcoin volatility.
The same day, Coinbase also reported Paypal withdrawals degrading.
However, unlike on May 10th when the BTC price dropped from $9,500 to $8,700 that saw $442 million in volume the highest in the month, trading volume on June 1st was half of that at $214 million, as per Skew Markets.
Actually, on May 10 as well, Coinbase reported downtime for both Coinbase and Coinbase Pro.
This isn't even the first time Coinbase has gone down. Just last week on May 28th, Coinbase had connectivity issues the day BTC price saw a spike from $9,100 to $9,600. Before that, on April 9 the exchange experienced “degraded performance.”
The market is getting fed up with Coinbase going down whenever bitcoin sees a bout of volatility, even as little of a move as $500 but the exchange only saw a decline of 6.9% in its traffic in April, still above 21 million.
However, it does raise a big question on Coinbase if it will be able to maintain its system when the next bull market arrives and bitcoin records a large percentage of increases.