Bitcoin Traders Still Stuck in Limbo as Coinbase Faces Technical Outage For Over Two

• Coinbase customers report rejected withdrawals after an outage on May 13, 2024.
• The largest American crypto exchange claims all issues are resolved.
• Bitcoin restores $62K despite mounting outflows in Hong Kong’s ETF market.

The leading American crypto exchange, Coinbase, suffered technical difficulties on May 13, 2024. However, two days later, it seems that a large chunk of Coinbase’s customers are still experiencing rejected crypto withdrawals. According to the initial investigation, the two-hour glitch was likely caused by massive Bitcoin (BTC) sell orders that exceeded the market depth at the time of placing.

Moreover, the Coinbase system glitch coincided with Bitcoin’s sharp drop to $61,400 after trading at $62,700 for the majority of the day. Upon further investigation, DailyCoin found that the reason checks out with the action on Bitcoin’s combined liquidity book. This metric points unevenly towards $5.62 billion in Bitcoin sales over the past 24 hours, while BTC bids have dropped by 13% to $1.22 billion, according to CoinPaprika.

Bitcoin Rebounds to $62K Despite Hefty Sales

These technical issues occurred at 4:19 a.m. UTC on May 13, 2024, and impacted Coinbase’s app, website, and API. While Coinbase claims to have resolved most issues at 7:42 a.m. UTC, traders are still seeing error messages like “sending to this recipient is temporarily disabled.” 

However, Coinbase’s service status reads: “Coinbase is now fully recovered. We appreciate your patience and apologize for the inconvenience.” While Coinbase customers like Nigel Dias are reasonably fuming over the impact of Coinbase’s outage, Bitcoin recovered above $62,000 despite the uneven liquidity.

As of press time, Bitcoin is priced at $62,523.65 with 1% gains over the past 24-hour period. Bitcoin recorded 8% growth over the past two weeks, despite Bitcoin exchange-traded funds (ETFs) seeing three consecutive days of net outflows in the newly-opened Hong Kong ETF market. Despite today’s micro gain, BTC’s long positions piled up to $73 million in liquidations out of a $105M 24-hour total.

On the Flipside

• According to Coinbase’s service status page, the most outages, 36, occurred in March 2024 during a massive bull run.
• While there were 29 incidents in April 2024, there have been 14 incidents on Coinbase’s centralized exchange (CEX) this month.

Why This Matters

Coinbase is a publicly-traded firm operating a cryptocurrency exchange that has a major impact on the crypto markets.

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