Quick Look
- Coinbase faced technical issues as Bitcoin soared past $60,000, reaching its highest price since November 2021.
- Users reported zero balances and errors in buying, selling, trading, and transferring on the website and mobile app.
- Coinbase assured users that their assets were safe, attributing the outage to a significant surge in traffic.
- The SEC’s approval of the first-ever U.S. spot exchange-traded funds in January has contributed to Bitcoin’s value more than doubling in the past four months.
- Coinbase spent $2.9 million lobbying for crypto policy in 2023, highlighting its active role in shaping the industry’s regulatory landscape.
Coinbase, a leading cryptocurrency exchange, encountered technical issues on Wednesday, causing disruptions for users worldwide. This coincided with Bitcoin, the largest cryptocurrency by market cap, breaking past the $60,000 mark for the first time in over two years. The digital asset surge was partly fueled by the Securities and Exchange Commission’s (SEC) recent approval of the first U.S. spot exchange-traded funds (ETFs), significantly bolstering investor confidence.
Coinbase Support quickly addressed the concerns on X (formerly Twitter), acknowledging the issue of users seeing zero balances and experiencing transaction difficulties. CEO Brian Armstrong apologized for the inconvenience, citing an unprecedented surge in traffic as the primary cause of the outage. Despite the technical setbacks, Coinbase reassured its customers that their assets remained secure.
Coinbase’s Influence and Advocacy in Washington
Coinbase’s technical glitches occurred against its increased advocacy and lobbying efforts in Washington. The company has been pushing for favourable crypto policies, spending $2.9 million in 2023 to influence legislation and regulation. Coinbase’s lobbying efforts have focused on key issues like the Financial Innovation and Technology for the 21st Century Act and the Digital Asset Anti-Money Laundering Act of 2023. These efforts underscore Coinbase’s commitment to shaping a regulatory environment conducive to cryptocurrency innovation and growth.
Market Reaction and Recovery
The outage at Coinbase, amid Bitcoin’s price milestone, led to a temporary dip in the cryptocurrency’s value, with a loss of over 4% following reports of the glitches. However, Coinbase worked swiftly to address the technical issues, with updates indicating gradual improvements in trading functionality. Despite the hiccup, Bitcoin’s overall momentum remains strong, reflecting the growing mainstream acceptance and investment in cryptocurrencies.
As the dust settles, Coinbase’s experience highlights the challenges and opportunities within the rapidly evolving digital asset landscape. With increased investment and regulatory clarity, the cryptocurrency market continues to mature, promising exciting developments for investors and industry stakeholders.
