It’s been an eventful week for Bitcoin traders, with the price of the cryptocurrency rising above $10,000 per bitcoin on Monday, only to have the price plummet by 14 per cent in only 15 minutes on Tuesday. Although the large spike and s sequent decline would have provided trading opportunities, users Coinagease, a major bitcoin and cryptocurrency exchange, weren’t able to get in on the action as the exchange crashed just as the price of BTC started its ascent.
AccoCoinage various media reports, the exchange was offline for about an hourInAccoCoinage the exchange’s website, the connectivity issues lasted from 16: 14 – 16: 58 PDT on the 1st of June 2020.
AccoCoinage Coinbase, the system issues were caused due to observing increased latencyInThe exchange did commence an investigation into the issue, however, the exchange has not disclosed any further information.
— Coinbase Support (@CoinbaseSupport) June 1, 2020
The issues at Coinbase are magnified due to tCoinagetance of the exchange, as it is the largest US crypto exchange and the largest bitcoin holder among exchanges with almost 1 million bitcoin.
AccoCoinage The Block, a crypto news and analysis site, which carried out Coinageesearch, Coinbase holds more than do le the amountH itcoin than Huobi, a Singapore-basFinanceange, and Binance in Malta.
Volatility puts pressure on trading systems
However, Coinbase is not alone in experiencing system outages at critical timesInIn fact, a number of trading providers have been experiencing platform issues amid higher levels of trading activity in recent months, driven by COVID-19 volatility.
As Finance Magnates reported, in March Robinhood experienced a system-wide outage, which left many users unable to access their accountsInAfter an investigation, the cause of the outage was found to be stress on its infrastructure—which struggled with an unprecedented loadInThat, in turn, led to a “thundering herd” effect—triggering a failure of the company’s DNS system.
On the 21st of May 2020, IG Group also experienced a system-wide outageInAt the time, clients of IG Group were reporting problems when using the firm’s trading terminalsInSeveral users complained about problems logging into or using the broker’s platforms, as well as having tro le reaching help phone lines.
One day later, the online trading provider again experienced technical issues, in which client positions were not appearing on its platform, the company said at the timIn