Bitcoin marked a historic milestone after its price surpassed $69,200 today (Tuesday), according to Coinbase’s data. This surge followed a broader trend of heightened interest and investment in Bitcoin, driven notably by the introduction of Bitcoin exchange-traded funds (ETFs) in the United States.
The Impact of Spot Bitcoin ETFs
Bitcoin’s ascent to new heights is mostly due to the influx of investment from the latest wave of spot Bitcoin exchange-traded funds (ETFs) in the United States, Cointelegraph reported. These ETFs have emerged as a pivotal driver of the cryptocurrency’s price appreciation.
Despite its unprecedented surge to new all-time highs, Bitcoin remains susceptible to significant volatility, particularly in light of the upcoming halving event. According to CoinMarketCap, the price of Bitcoin has jumped 18% in the past week and 1% in the past 24 hours to trade at $67,242 at the time of this publication.
The impending halving, a key feature of Bitcoin‘s protocol that reduces block rewards by half approximately every four years, poses a challenge and uncertainties for investors navigating the cryptocurrency landscape.
As Bitcoin’s price surges past its all-time high, institutional investors are seizing the opportunity to dive into the cryptocurrency market through ETFs, Finance Magnates reported. Last week, BlackRock’s Bitcoin ETF experienced a record-breaking inflow of $520 million, underlining the escalating frenzy surrounding Bitcoin.
Market Responds to Bitcoin’s Surge
Bitcoin’s rally past $60,000 on Wednesday not only marked a milestone in the cryptocurrency’s trajectory but also tested the resilience of one of the top crypto exchanges, Coinbase. As Bitcoin’s price soared, Coinbase experienced an unprecedented surge in traffic, leading to technical glitches and users reporting zero balances on their accounts, Finance Magnates reported.
The surge in Bitcoin’s price triggered a frenzy of activity on Coinbase, resulting in technical issues that left users unable to access their account balances. Coinbase confirmed that the problem stemmed from a technical glitch and assured users that their funds were safe despite the display errors.
Brian Armstrong, the CEO of Coinbase, took to Twitter to address the situation, acknowledging the overwhelming surge in traffic that exceeded their expectations. Despite having prepared for a significant increase in activity, Coinbase found itself overwhelmed by the volume of transactions and inquiries.
After nearly 12 hours of disruption, Coinbase managed to restore its services, including the resolution of account balance display issues. The incident highlighted the challenges faced by cryptocurrency exchanges in coping with sudden and intense market movements.
This article was written by Jared Kirui at www.financemagnates.com.CryptoCurrencyRead More
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