Binance Face Outage as Bitcoin Price Post new ATH Above $44K

Prashant Jha Bitcoin News PublishedFebruary 8, 2021 | ModifiedFebruary 8, 2021

Binance

Binance Face Outage as Bitcoin Price Post new ATH Above $44K

Binance went down temporarily owing to high trading activity on the platform as Bitcoin price touched a new all-time high. Bitcoin price rallied in the wake of Tesla’s $1.5 billion bitcoin purchase hitting a new all-time high of $42,900 after spending more than a month under $35,000.

Crypto exchanges going down during peak trading hours has become a trend of the sort this bull season. While Coinbase used to be the first exchange to experience an outage on most occasions, Binance seems to be quickly catching up. The technical faults of these exchanges have also raised concerns over many crypto companies’ public debut this year including Coinbase.

Crypto Exchanges Frequent Outages Lead to Heavy Losses

The inability of crypto exchanges to handle heavy trading traffic during peak trading hours had led to heavy losses to traders with open market positions. Many traders with high leverage positions were liquidated as they could not close their position in time.

Many even asked CZ, the CEO of Binance to compensate users for their losses. The frequent outages combined with traders losing billions in liquidated positions have also raised questions about whether the crypto ecosystem is ready to handle mainstream trade volumes and traffic.

The recent price surge of bitcoin came after Tesla’s SEC filing to purchase $1.5 billion in bitcoin surfaced soaring bitcoin price from just under $40,000 to over $44,000 in mere 15 minutes. The sudden price surge led to heavy traffic on mainstream exchanges like Binance leading to technical issues thus bearing exchange accesses to customers.

Coinbase and Binance both have recorded all-time-high spot trading volumes worth $9.5 billion and $8 billion during the last price surge at the start of January. However, despite being aware of technical limitations during peak trading hours, these exchanges haven’t made necessary changes to accommodate for the rising traffic.

 

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Prashant Jha 294 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
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