The price of bitcoin has taken another nasty dive, and this means the currency is trading in the $30,000 range. It has now fallen close to $30,000 per unit from its April high of nearly $64,000 and exchanges like Coinbase are experiencing huge technical problems as a result.
Coinbase Is Having Some Problems
The price of bitcoin has been on a downward spiral for the past several weeks, and Coinbase is ultimately at the center of this story. BTC rose to its new all-time high in mid-April when it was announced that Coinbase had made its public debut on the Nasdaq. Shares in the exchanges were trading for more than $300 each, and things really seemed to be taking off for the crypto space.
When BTC rose to about $64K, many were convinced that the bull run which had been occurring for approximately one year at that point was going to take off even further, and thus the space would be set for life. However, things did not turn out that way as not long after Coinbase became a publicly tradeable company, BTC began to fall into oblivion, which some at that stage considered a normal correction for the world’s largest digital currency by market cap.
This would have been standard procedure in many ways. The currency had risen into extreme territory rather quickly, which meant that it was unable to keep up its momentum and needed a moment or two to calm down and catch its breath, but now things have taken an even uglier turn with the asset dropping into the $30,000 range – something analysts felt would not happen right away.
The plunge came after China announced that it was taking a page from India’s 2018 playbook and barring financial institutions from providing tools and services to any business or entity that delved in crypto or blockchain. Many exchanges say that the price drop took place too quickly, and that many of their customers have had difficulty logging in or trading their assets.
One of these companies is Coinbase, which released the following statement on Twitter:
We know that customers are experiencing some issues with logging in, seeing their balances and trading. Our teams are working to resolve this as soon as possible and funds in Coinbase accounts are safe. We will circle back as soon as we have an update.
This Happens Too Often
To be fair, Coinbase is no stranger to these kinds of issues whenever bitcoin’s price rises or falls in such dramatic fashion. This occurred several times in 2020, when bitcoin was enduring the most meteoric rise of its existence. Coinbase acknowledged this in a recent stock report, explaining:
In 2020, we experienced approximately 30 outages, with an average outage duration of 64.6 minutes. These outages lead to increased customer service expenses.