The popular cryptocurrency exchange Coinbase experienced a major outage today, causing a brief dip in Bitcoin’s price. Interestingly, this crash has fueled fresh speculation about a potential Bitcoin bull run. The market appears to be drawing parallels with previous Coinbase crashes, which preceded major surges in Bitcoin’s price.
Between 12:15 PM ET and 12:30 PM ET today, Bitcoin experienced a drop from $64,000 to $58,200, representing a 10% swing in just 15 minutes. This volatility occurred during a period when many Coinbase users reported their accounts reflected $0 balances.
Bitcoin Rallies Ahead of Coinbase Outage
In the hours leading up to the crash, Bitcoin’s price and trading volume exhibited upward momentum, echoing the market activity of 2021 when the cryptocurrency hit record highs. Bitcoin’s volume increased by 20% on the day of the crash, reaching $66.4 billion. It briefly touched $64,000 before the Coinbase outage, coming within 10% of its all-time high of $69,045 reached in November 2021.
This is absolutely insane:
The Coinbase, $COIN, crash just erased $100 BILLION of market cap in #Bitcoin in 15 minutes.
Between 12:15 PM ET and 12:30 PM ET, Bitcoin fell from $64,000 to $59,000.
This was a near 9% swing in 15 minutes right as many Coinbase users began showing… pic.twitter.com/fUcRusrddX
— The Kobeissi Letter (@KobeissiLetter) February 28, 2024
Market Enthusiasm Grows Amid Volatility
The sudden price dip linked to the Coinbase crash appears to have had a counterintuitive effect on market sentiment. Many investors are interpreting this event as a catalyst for a potential Bitcoin bull run ahead of the halving event. The market’s enthusiasm appears undeterred by the crash, which some analysts estimate erased $100 billion of Bitcoin’s market capitalization in mere minutes.
“Coinbase crash literally happened like once a month last bull,” crypto trader @hash_cough tweeted. “This is your entry, not your exit.”