Major cryptocurrency exchanges like Coinbase and Binance experienced downtime on Wednesday during a crash in the crypto markets that saw the liquidation of $8 billion worth of digital assets.
Coinbase reported a “partial” outage to users on their website and mobile app after the selloff began, brought on largely due to China’s recent crypto ban. Gemini, Binance, and CoinMarketCap also experienced similar outages during this time.
Both Coinbase and Binance claim that the outage occurred due to the withdrawal process for Ethereum and other ERC-20 tokens that operate off of their network. Effectively, the delay is being blamed primarily on high network traffic as users rushed to sell their digital assets.
China’s crypto ban barred banks and payment services from offering cryptocurrency services to their users, including the trading, monitoring and custody of crypto coins. This marks a sharp reversal from a statement made by The People’s Bank of China in April that Bitcoin was a “viable alternative investment”.
At the time of writing, crypto markets appear to be bouncing back, with Bitcoin surging back to $41,000 in value after falling to below $30,000 at its lowest point on Wednesday. Ethereum is back up at $2,900 in this morning’s market, touching below $2,100 during the crash.
Doge, which fell to $0.28 during the selloff, is back up around $0.42 in value, with other alt coins seeing similar rebounds as markets appear to stabilize.
Popular securities data website TradingView has upgraded most crypto coins to a “neutral” standing this morning, with investors speculating that crypto markets might be in recovery. Other investors are cautious of a “bull trap”, which is a false signal for investors that markets are trending upwards before they continue to decline.
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