Coinbase seems to be operating smoothly, even with Bitcoin setting a new price above $41,000.
Can Coinbase keep up with Bitcoin rallying past $41,000? NEWS
Coinbase is under the microscope with the price of Bitcoin (BTC) exceeding $41,000 just after a small setback after reaching $40,000 on Thursday.
The US-based crypto exchange is known to face serious connectivity problems during periods of peak trade activity. In fact, these disruptions have supposedly prevented traders from taking advantage of gains and price declines, robbing them of opportunities to make profits and re-enter.
As Cointelegraph recently reported, Coinbase has acquired Routefire, a platform for enhanced trade execution, as part of an effort to better handle peak periods of cryptomeda trading activity.
To date, Coinbase has not reported any connectivity issues on its exchange platforms. According to its status page, the company identified and fixed the root cause of the service interruption on Thursday.
Coinbase is not the only major exchange that experienced problems during the Bitcoin price hikes. Binance also goes offline routinely when BTC prints large price gains. Commenting on the problem in December 2020, Binance CEO Changpeng Zhao noted that 5% gains in Bitcoin price are often accompanied by a 30-fold increase in trading volumes, which can cause significant latency problems on the platform.
Bitcoin’s rise above the $41,000 mark places BTC among the top 10 global assets, with a market capitalization higher than technology conglomerates such as Facebook and Tencent. Above Tesla, Bitcoin will need to exceed the $1 trillion market capitalisation mark to outperform companies like Google and Amazon.
BTC’s 24-hour chart. Source: CoinMarketCap
At the current market price, Bitcoin has risen more than 40% year-to-date and almost quadrupled since the same time in 2020.
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