Bitcoin Had a 7% Freefall, Was Coinbase's Disturbance the Culprit?

Bittime - Bitcoin experienced a 7% price drop on Wednesday (06/03/2024) after Coinbase, one of the world's largest crypto exchanges, experienced service disruptions for several hours. The drop comes after Bitcoin hit its all-time high of $69,000 on Tuesday.

The Coinbase outage began around 10:00 am EST and lasted for nearly three hours. During that time, users were unable to buy, sell, or transfer Bitcoin on the Coinbase platform.

Reporting from Cryptonews, the disruption likely caused frustration among users and possibly contributed to the decline in Bitcoin prices.

In response to this issue, Coinbase continues to update and reassure its users due to the server outage.

"We are aware that some users may experience errors when making transactions. Our team is investigating this issue and will provide an update soon. Your assets are safe," they wrote, quoted by Cryptonews.

“We are aware some users may experience increased latency on Coinbase.com and some users may see intermittent zero balances. Rest assured, your funds are safe. Our team is investigating this issue and will provide an update. Trade is not affected at this time," he continued.

Some other factors that may have contributed to the decline in Bitcoin prices include

• Increased regulation: Regulators around the world are increasing their oversight of the crypto market. This may discourage investors from investing in Bitcoin.
• Stability concerns: Bitcoin is a highly volatile asset and its price can fluctuate wildly. This may discourage investors from investing in Bitcoin in the long term.

Even though Bitcoin has experienced a price decline, there are still many investors who are bullish about the future of this asset. Some analysts believe that Bitcoin could reach $100,000 by the end of 2024.

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Analysis of the Impact of Coinbase Disruption on Bitcoin Price

The Coinbase outage on March 6, 2024 was a significant event that impacted the crypto market. The following is some analysis of the impact of this disruption:

Short Term Impact

• Price Drop: Coinbase outage caused Bitcoin price to drop by 7%. This is likely caused by several factors, including:
  • Uncertainty: The disruption caused uncertainty among investors, which made them reluctant to buy Bitcoin.
  • Panic selling: Some investors may panic and sell their Bitcoin during the disruption.
• Trading Volume: Bitcoin trading volume dropped significantly during the Coinbase outage. This suggests that investors are reluctant to trade during periods of uncertainty.

Long Term Impact

• Coinbase Reputation: The outage could damage Coinbase's reputation and cause some users to lose trust in the platform. This may cause a decrease in trading volume on Coinbase in the long term.
• Regulation: Such disruptions could attract the attention of regulators and cause them to increase scrutiny of the crypto market. This could make it more difficult for crypto companies to operate in the future.
• Bitcoin Adoption: Such disruptions may slow the adoption of Bitcoin by new users. This is because new users may be reluctant to use unreliable crypto platforms.

Also Read How to Buy Crypto:

Conclusion

The Coinbase outage on March 6, 2024 was a significant event that impacted the crypto market. The short-term impact of the disruption included a drop in Bitcoin price and trading volume.

The long-term impact of the disruption could include damage to Coinbase's reputation, increased regulation, and slowed Bitcoin adoption.

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How to Buy Bitcoin (BTC) on Bittime

You can buy and sell  Bitcoin (BTC)  in an easy and safe way via  Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Bitcoin (BTC)  is available on Bittime with  the market pair BTC/IDR . To be able to buy  BTC IDR  at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn  the complete guide on how to buy Bitcoin (BTC) on Bittime . 

Monitor price  chart movements for Bitcoin (BTC ) ,  Ethereum (ETH) , Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.  

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Babylon and Ankr Launch First Bitcoin Minting Protocol

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.