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On Wednesday, February 28, the cryptocurrency world was ablaze as Bitcoin Hits $64,000 mark, marking its highest level since October 2021. The rally, however, was short-lived as a sharp retreat followed, triggered by a significant crash on the Coinbase exchange platform. This article delves into the events surrounding Bitcoin’s meteoric rise and subsequent fall, highlighting the role of Coinbase in the unfolding drama.
Bitcoin Hits $64,000: A Remarkable Milestone
Bitcoin’s price soared over 12% within 24 hours, reaching a staggering $64,100 on Coinbase, buoyed by renewed investor enthusiasm. This surge was emblematic of Bitcoin’s resilience and enduring appeal in the volatile cryptocurrency market.
Sharp Retreat and Coinbase Crash
However, the jubilation quickly turned to despair as Bitcoin’s price plummeted to lows of $58,000 amidst a flurry of $100 million in BTC liquidations within a single hour. The market witnessed total liquidations exceeding $630 million, with both short and long positions experiencing substantial losses.
Coinbase, one of the largest cryptocurrency exchanges, experienced technical difficulties during this tumultuous period, exacerbating the situation. Users reported seeing their account balances drop to zero, while others encountered errors when attempting to buy or sell. Coinbase support acknowledged the issue, reassuring users that their assets remained secure while their team investigated the matter.
We are aware that some users may see a zero balance across their Coinbase accounts & may experience errors in buying or selling. Our team is investigating this & will provide an update shortly. Your assets are safe.
— Coinbase Support (@CoinbaseSupport) February 28, 2024
You can track this incident at https://t.co/a3pl4WiDhZ
Coinbase’s Response to the Crisis
Brian Armstrong, the founder and CEO of Coinbase, acknowledged the unprecedented surge in traffic overwhelming the exchange’s infrastructure. He issued an apology for any inconvenience caused and assured users that their team was working diligently to resolve the issues.
We are dealing with a LARGE surge of traffic – apologies for any issues you encounter. The team is working to remediate.
— Brian Armstrong 🛡️ (@brian_armstrong) February 28, 2024
Bitcoin’s Future Amidst Market Volatility
Despite the setback, Bitcoin’s upward trajectory over the past month has been remarkable, with the cryptocurrency nearly doubling in value since October 2023. The recent surge in Bitcoin’s price coincided with a significant influx of capital into spot Bitcoin ETFs, fueled by the SEC’s approval of these financial instruments in January.
BlackRock’s IBIT recorded a staggering $1.3 billion in volume, indicative of institutional interest in Bitcoin. The surge in spot ETF volumes, reaching $2.6 billion within half a day of trading, underscored the growing frenzy surrounding Bitcoin investment.
JEEZ: Only halfway through trading day and New Nine bitcoin ETFs have already broken their all time daily volume record w/ $2.6b. We got 4 btc ETFs in Top 20. $IBIT is #4 overall, it's gonna trade more today than in its first two wks combined. This is officially a craze. pic.twitter.com/Wqez1rKrCg
— Eric Balchunas (@EricBalchunas) February 28, 2024
Anticipated Pullback and Market Sentiment
As Bitcoin hovers around the $60,000 level, market analysts anticipate a potential pullback ahead of the halving event. The market sentiment remains cautiously optimistic, tempered by the recent volatility and the lingering effects of the Coinbase crash.
Conclusion
Bitcoin Hits $64,000 marking a significant milestone in its tumultuous journey, highlighting both its resilience and susceptibility to market fluctuations. The Coinbase crash served as a stark reminder of the challenges facing cryptocurrency exchanges amidst surging demand. As Bitcoin continues to captivate investors and regulators alike, its future remains intricately intertwined with the broader dynamics of the digital asset landscape.
