A few days ago the world was in panic when the famous cryptocurrency shaved 18% value in a space of (3) hours. It was a sheer case of business disruption that caused a steep plummet. Who that there was a linkage between outages and share price – well we saw it for Bitcoin. This electronic asset has seen one of the world’s greatest appreciations in a short space. Trading at USD11,000, the currency almost gave its investors heart attacks when bleeped to USD9,300. The whole world was scared of an asset bubble thinking the next one would be around cryptocurrency. Well 24hrs later the cryptocurrency is trading for right around USD10,000 not so far from where it was before the crash. This was the first volatility shocker lesson in crypto markets. One would have expected players to exit the market to hedge losses but hey, more wallets have been opened fuelling demand that soared the price even higher.
The wallet and exchange service Coinbase reported record traffic in the yester adding 100,000 new users in a day. According to Coinbase, the record traffic caused its services to slow down. Gemini reported performance problems due to “an influx of web traffic.” Bitstamp didn’t provide an explanation for its service disruption. The bitcoin price declined steeply as the exchange outages prevented some traders from accessing their accounts. In about three hours, the price plunged 18%, to USD9,300. Coinbase and Gemini restored their services in about 10 hours, while Bitstamp resumed its service in about an hour. Bitcoin is now trading at USD9,900, or down 0.7% over the last 24 hours.
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