Coinbase Faces Outages as Bitcoin Surges Past $60,000

Coinbase, the leading U.S. cryptocurrency exchange, grappled with significant service disruptions and errors on Wednesday as Bitcoin surged past $60,000 for the first time since 2021. Users encountered outages and inaccuracies, with some accounts erroneously displaying a $0 balance and others unable to log in altogether.

Reports of these issues emerged around noon, coinciding with Bitcoin’s remarkable rally. While Coinbase has restored login functionality, users continue to encounter difficulties with fund transfers and certain payment methods.

CEO Brian Armstrong acknowledged the problems, attributing them to an unexpectedly high volume of traffic following Bitcoin’s surge. Despite preparing for increased activity, the exchange was overwhelmed, leading to the disruptions.

This incident occurred against the backdrop of Bitcoin’s resurgence in 2024. Following its peak of approximately $68,000 in November 2021, the cryptocurrency experienced sharp declines, plummeting to under $16,000 by November 2022. However, January 2024 saw the Securities and Exchange Commission approving spot Bitcoin exchange-traded funds, enabling firms like Fidelity and BlackRock to offer investment vehicles tied to Bitcoin’s price.

On Tuesday, Bitcoin reached $57,000, followed by a 7% surge on Wednesday to surpass $61,000. However, the reports of Coinbase’s outages led to a $2,800 drop in Bitcoin’s value later that day.

Coinbase’s challenges underline the volatility and challenges in the cryptocurrency market, where infrastructure must keep pace with rapidly changing demand and market conditions.