The long-awaited rise in Bitcoin’s price beyond USD 20,000 caused a surge in traffic at the crypto-currency exchanges.
Both Binance and Coinbase suffered technological problems on Wednesday, the same day that Bitcoin (BTC) crossed the $20,000 price threshold for the first time. Binance related its problems to the number of people browsing the exchange.
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Changpeng Zhao, or CZ, Binance’s CEO, tweeted on Wednesday at 2:13 pm UTC:
„Bitcoin just blew up. We experienced some scale problems. They should be fixed by now. Demand underestimated. Adding MUCH more ’servers‘ still“.
A CZ update came about half an hour later, revealing improvements, as well as a dramatic increase in users on the platform. „There are still some latency issues here and there. We’re working on it, we’re all working on it,“ he tweeted, adding, Bitcoin Formula is up 5%, traffic is up 30 times. At 2:56 pm UTC, CZ pointed out that the situation was resolved.
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Bitcoin surpassed USD 20,000 for the first time at 1:42 pm UTC on Dec. 16, reaching a price near USD 20,800 at 2:14 pm, according to TradingView.com.
At 2:45 pm UTC, Coinbase also reported problems through its status page. „Coinbase.com is experiencing connectivity issues,“ the exchange reported. The platform said the problem was resolved at 4:27 pm.
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Coinbase has a history of technical difficulties during periods of high traffic, which are commonly referred to as „connectivity issues“ as the cause. Brian Armstrong, Coinbase’s CEO, recently said the exchange is working toward solutions to manage high participation in the website.
Bitcoin’s price reached $21,569 while Dave Portnoy misses a $160,000 opportunity
The price of Bitcoin reached a new all-time high of $21,569, but do the bitcoiners that came out earlier regret it?
The price of Bitcoin surpassed $21,000 for the first time in history on December 16, shortly after the cryptoactive surpassed the psychological threshold of $20,000.
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The recent rise to USD 21,569 at Coinbase at approximately 11:15 PM UTC means that the institutional investor, MicroStrategy, has seen its holdings double in terms of price since it announced in September that it had adopted Bitcoin (BTC) as its main cash asset, when the price was below USD 11,000.
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However, not all high profile investors have made large profits. Barstool Sports founder Dave Portnoy said he sold his Bitcoin holdings in August and potentially missed the opportunity to see over $100,000 in profits. Portnoy reported that he bought at least USD 200,000 at BTC on August 13, when the price was below USD 12,000. That same amount of Bitcoin would be worth more than USD 360,000 today, as the price has risen 80% since then.
Alex Mashinsky, CEO of Celsius Network, predicted that the price will drop soon, presenting an opportunity to buy.
Bitcoin price reaches $20,000 for the first time in history
„Settle in, because we will visit the $20,000 to $22,000 level at least half a dozen times before we exceed the $30,000 level later in 2021,“ he said.
„I think we’ll also try the $14,000-$16,000 level again either on a low-volume weekend or with bad news around. That will probably be the last time most of us will have the opportunity to buy bitcoin below $20,000 levels.
With today’s bullish activity, investors who short the crypto asset saw their positions liquidated. According to data from the crypto trading platform, Bybt, more than USD 630 million in Bitcoin have been liquidated in the last 24 hours. Glassnode reported that earlier today there were almost $95 million in Bitcoin futures settlements at Binance in just one hour: