Coinbase Accounts Show $0 Balance Amidst Bitcoin Rally to $60K, Users Shocked
In Brief
Several US Coinbase users reported seeing their account balances drop to $0 due to a glitch while Bitcoin price was rallying to $60K.
Several users of the cryptocurrency exchange platform Coinbase in the United States reported that their account balances were reset, with some customers witnessing their account balances showing $0 while Bitcoin (BTC) experienced a significant rally yesterday, swiftly reversed later.
“We are aware that some users may see a zero balance across their Coinbase accounts and may experience errors when buying or selling. Our team is investigating this issue and will provide an update shortly. Your assets are safe,” said Coinbase.
The exchange encountered an error that persisted for ten consecutive hours, as reported on its website, during which the platform investigated, addressed, and resolved the display issues for users. Currently, all services on Coinbase.com have been restored.
Coinbase CEO Brian Armstrong later explained that the platform had anticipated a surge in traffic of up to 10 times its usual volume, but the demand it experienced surpassed that projection. In a post on social media platform X, he mentioned the cost implications of maintaining services over-provisioned and expressed the ongoing commitment to improving auto-scaling solutions while addressing any remaining bottlenecks.
Coinbase Faces Service Disruption Amid Bitcoin Rapid Drop
The service disruption occurred several hours after Bitcoin surpassed $60,000, marking its first time reaching this level since November 2021. Subsequently, it approached $64,000 before experiencing a rapid decline back to $60,000 within approximately one hour.
Currently, the largest cryptocurrency by market capitalization is traded at $62,526, reflecting a more than 7% increase in the 24 hours, as indicated by data from CoinMarketCap. Given the favourable conditions in place for a significant bull run leading up to the halving, there is potential for the Bitcoin price to achieve new highs, in coming months, surpassing the peak observed in 2021, which stood at $69,000.
However, this is not the initial instance of Coinbase facing an outage attributed to intense trading activity. The platform briefly went offline in May 2020 following a 10% decline in Bitcoin within a 30-minute timeframe. Before that, a similar issue arose in June 2019 when the cryptocurrency experienced a $1,800 drop in just 15 minutes.
Coinbase’s recent service disruption amid Bitcoin’s rapid market fluctuations highlights ongoing challenges faced by the exchange in managing heightened user demand.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
