Coinbase Crashes From Increased Latency As Bitcoin Breaks Above $10,400

by Simon Briggs

The crypto industry kept its breath on whether Bitcoin would jump over the major resistance level of $10,000, hoping that the largest cryptocurrency to date would gather enough momentum to breach over the barrier. Bitcoin received the much-awaited bullish impulse and spiked, but the created fear-of-missing-out (FOMO) buy-in from traders increased trading pressure on exchanges. The pressure resulted in the largest crypto exchange in the United States shutting down due to “increased latency”.

Coinbase’s services experienced a temporary shutdown just an hour after Bitcoin breached the $10,000 mark. Coinbase reported the issue at 16:14 PDT and took the team at the exchange around 30 minutes to specify the exact reason for the problem. Coinbase’s services were suspended for little under one hour, as the exchange reported the “incident has been resolved” at 16:58 PDT on June 1.

However, the Coinbase team did not provide any additional information about the nature of the exchange shutdown.

This isn’t the first time Coinbase is experiencing technical issues, as the exchange’s log report of similar connectivity issues on May 28, when the exchange was offline again for almost an hour. Also, Coinbase had problems with its 3DS payment system, which resulted in slowed withdrawals. The latest Coinbase postmortem report dates back from April 29.

During the April blackout, Coinbase reported that the main API that powers both Coinbase.com and its mobile applications has crashed, resulting in users unable to connect to its UI. The reason, according to the report, was an increase in primary database connections. The problem seemed to repeat itself, as the timeframes of operations shutdowns are almost an exact copy of the events of May 28 and June 1.

Meanwhile, data from Downdetector shows 91 reports for connection problems with Coinbase. Interestingly, the data aggregator pointed out two secondary waves of outage reports, and a normalization period.

Source: DownDetector

Despite Coinbase having major outage issues, Bitcoin’s price remained relatively stable and above $10,000. After the initial push to $10,428, the largest cryptocurrency consolidated at around $10,116.14, as of press time.