The latest Coinbase app outage triggered a staggering $100 billion loss in Bitcoin (BTC) market cap inside a mere quarter-hour. Though the problem has been fastened, the Coinbase outage introduced huge volatility into the crypto market immediately. However, Bitcoin bounced again after the sudden downfall and sustained above the $62,000 mark.
Coinbase Outage Sends Shockwaves Through Crypto Space
According to a submit on X by The Kobeissi Letter, between 12:15 p.m. ET and 12:30 p.m. ET on February 28, the Bitcoin worth plummeted from $64,000 to $59,000, marking an almost 9% swing. The pullback could possibly be attributed to Coinbase being down as its customers discovered themselves watching a $0 stability of their accounts.
This disruption unfolded simply as Bitcoin was simply 10% away from a brand new all-time excessive, intensifying the shockwaves rippling by means of the cryptocurrency group. Moreover, the Coinbase outage led to loads of hate feedback being directed on the crypto trade.
At press time, the Bitcoin price was up by 5.70%, settling at $62,627.55 on Wednesday, February 29. The crypto boasted a market cap of $1.22 trillion, bouncing again from the latest losses. In addition, the BTC market cap soared by a whopping 105.26% to $92.27 billion. The Bitcoin worth attained a excessive of $63,913.13 earlier than the latest pullback and rebound frenzy.
Also Read: Coinbase Suffers Technical Glitch Amid Ascending Bitcoin Price
CEO Brian Armstrong Says The Issue Has Been Fixed
Coinbase CEO Brian Armstrong attributed the outage to the unprecedented inflows into the crypto market these days. In a submit on X, Armstrong famous that the “apps are now recovering.” He highlighted that the workforce had been prepared for a 10x surge in quantity, nonetheless, the truth exceeded expectations owing to the Bitcoin rally and the Coinbase app crashed.
The Coinbase CEO underscored that the fee issue performs a significant position within the web site and app upkeep. He stated, “It’s expensive to keep services over-provisioned, but we’ll need to keep working on auto-scaling solutions, and killing any remaining bottlenecks.” Whilst, he appreciated the customers’ endurance when Coinbase was down and said, “Thank you for bearing with us.”
However, customers spotlighted the app’s poor upkeep and bashed Armstrong for not taking satisfactory actions. They highlighted that different crypto exchanges that supply related providers like spot and derivatives buying and selling didn’t witness an outage, emphasizing Coinbase’s inefficiency.
Also Read: Bitcoin (BTC) Price: MicroStrategy’s Unrealized Profit Hits $5.7B High
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