Coinbase is under a microscope, and Bitcoin’s (BTC) price soars to over $ 41,000 after a slight regression, after exceeding $ 40,000 on Thursday.
The US-based crypto exchange is known to experience serious connectivity issues during times of high trading activity. Indeed, these disruptions have reportedly prevented traders from taking advantage of price gains and falls, depriving them of profit-taking and re-entry opportunities.
As Cointelegraph recently reported, Coinbase has acquired Routefire, an enhanced trade execution platform, to better cope with periods of peak crypto trading activity.
At the time of going to press, Coinbase has not yet reported any connectivity issues on its Exchange platforms. According to the status page, the company has identified and addressed the main cause of the service disruptions that occurred on Thursday.
Coinbase isn’t the only major exchange struggling with Bitcoin price rallies. Binance also routinely goes offline when BTC is printing big prize wins. Changpeng Zhao, CEO of Binance, commented on the problem back in December 2020, noting that 5% bitcoin price increases are often accompanied by a 30-fold increase in trading volume, which can lead to significant latency issues on the platform.
Bitcoin’s rise above the $ 41,000 mark has made BTC one of the top 10 global assets. Its market capitalization exceeds tech conglomerates like Facebook and Tencent. Above Tesla, Bitcoin must surpass the $ 1 trillion market cap milestone to overtake Google and Amazon.
At the current market price, Bitcoin has risen by more than 40% since the beginning of the year and has almost quadrupled since that time in 2020.