Bitcoin dropped by $1400, Coinbase to blame?

If you’re a Bitcoiner I’m sure you’ve been keeping an eye out on its chart for the last few days. Bitcoin has been firmly established in a bull market, moving up from its 2018 lows of $3,400 to almost getting close to $14,000. Last night however the Bitcoin price dropped by $1,700 within a few minutes and reports say that this was the aftermath of the Coinbase crash.

Coinbase is one of the most popular crypto trading platforms worldwide; with its roots all over the world the institution has one of the largest user bases and somehow the site crashed. The first reports came in when Coinbase stated that they were investigating an issue related to their API and Website. These were supposedly malfunctioning and Coinbase reported this around 1:47 PDT. If we look carefully at the Bitcoin chart during the same time, we can clearly see that the bitcoin price came stumbling down right around 1:25 p.m., just a few minutes prior to the first Coinbase announcement.

Those tried to cash out thinking this was a price crash, or even those who tried to buy the dip couldn’t as the cryptocurrency exchange was suffering one of the outages which previously bothered traders during the early 2018 and even during the 2017 Bull Run. Around 2:13 pm the Coinbase shared that they have identified the reports and was already working on a fix. Soon around 2:38 p.m. we received another report from Coinbase stating that the problem has been resolved. I checked my Coinbase account to see if the site was up again and within 2:40 p.m. Coinbase was fully operational.

The crash came right after bitcoin surpassed the $13,000 mark and was nearing $14,000. Previously bitcoin saw a sharp rise from the $12,000 mark and hit the $13,000 mark in a matter of hours. The crash followed a degraded performance report from Coinbase on June 25 with another crash reported on June 24, although both of the events were handled within hours of reporting.

This however shows how active the Coinbase team is which they have to be because each and every day new cryptocurrency exchanges are emerging and in order to stay ahead of the game businesses must always look to provide quality service.