Nobody can really predict Bitcoin’s (BTC) price volatility. But one thing is becoming painfully predictable when the price of Bitcoin suddenly lurches in one direction or another: One or more of the major cryptocurrency exchanges simply goes offline. This leaves users powerless to prevent losses from spiraling, as they are left unable to trade or buy more positions as a hedge.
These outages have happened time and time again. Most recently, as Bitcoin started climbing toward the $10,000 mark, Coinbase went offline. At the time it happened, Cointelegraph reported that this is the fourth time in the last three months that Coinbase has shut down during major moves in the price of BTC. Additionally, Twitter user CryptoWhale pointed out that there have been no fewer than 11 Coinbase outages over the last 12 months, each one coming at a time when Bitcoin’s price had moved more than $500 in value.
The Silicon Valley-based exchange later issued a statement via its blog, clarifying that the June 3 outages were due to an issue with its API, which was seeing five times more traffic than usual. Without directly addressing the issue of the frequency of outages, the blog post stated that Coinbase is “working on reducing the impact of price-related traffic spikes though pre-scaling and caching.” Meanwhile, the exchange saw users withdrawing BTC en masse, following the incident.
A broader problem?