Coinbase Crashes On Surging Trading Volume As Bitcoin Soars To 2021 High

Updated: 29 February 2024

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Leading US crypto exchange Coinbase crashed as Bitcoin pumped to the highest level since late 2021, with CEO Brian Armstrong attributing the issue to a surge in trading volume.

The outage happened as BTC soared to $64,000 on Feb. 28 for the first time since November 2021.

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

The Coinbase customer support team acknowledged the glitch, saying it led to some users falsely seeing zero balances in their accounts. Other customers also experienced errors when buying and selling.

According to Armstrong, the exchange “had modeled a ~10x surge in traffic and load tested it,” but yesterday’s volume exceeded even that.

”It’s expensive to keep services over-provisioned,” he said. “But we’ll need to keep working on auto-scaling solutions, and killing any remaining bottlenecks.”

Coinbase has since restored its services, an update said.

All customer account balance display issues have been restored on https://t.co/ohqDivlp6Y. Thank you to all of our customers for your patience today. https://t.co/RcelnYpQCi

— Coinbase Support (@CoinbaseSupport) February 29, 2024

Coinbase Glitch Confirms Bull Market, Crypto Twitter Says

Some crypto users on X made light of the situation, saying the glitch only confirmed that a bull market is underway.

Is it really a bull market until Coinbase goes down?

Feeling the nostalgia from previous cycles.

— Coin Bureau (@coinbureau) February 28, 2024

Coinbase has a history of crashing during periods of peak market activity. In April 2020, as Bitcoin almost reached a high of $9,000, Coinbase and Coinbase Pro crashed. At the time, the exchange attributed the glitch to connectivity issues.

Again in 2021, after Bitcoin created an all-time high of $69K, Coinbase reported connectivity issues that caused failed trades, delayed transactions, and degraded performance.

Crypto Twitter now believes that the Coinbase crash indicates a Bitcoin all-time high is just around the corner.

Bitcoin is up 6% in the last 24 hours to trade at $63,112 at 06:40 EST.