Bitcoin’s relentless ascension upwards in recent weeks was temporarily stymied today after several issues have cropped up at larger exchanges, including Coinbase, which saw account access temporarily unavailable. At this juncture it is unknown what the issue is and the status has caused a temporarily plunge in price of the cryptocurrency from a peak of $2800.
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Bitcoin had managed to summit a price of $2800, officially peaking near $2806, before it started to pare its recent gains, ultimately falling over -9.0 percent to trade at $2230 today. Interface problems are likely the biggest culprit for the retreat in prices, though the scale and scope of account availability cannot be understated.
Coinbase has indeed been intermittently down for the past two days and presently is not available, which is certainly an unwelcome development for investors of the currency. Given an unparalleled amount of leverage in the bitcoin and altcoin market presently unfolding, as well as a rally that up until today has shown no signs of slowing, concerns are unlikely to dissipate anytime soon, especially not until account access is restored on an overall basis.
This is not the first time that bitcoin has ran into such issues, as many investors still remember back in 2008 when liquidity issues dictated the currency’s availability. Any prolonged disruption of account services is likely to drive the price of bitcoin lower in a $2.0 billion daily market. Presently, most of the trading activity for bitcoin is relegated to Asia, though with the disruption affecting most large exchanges, this phenomenon could have global ramifications for the bitcoin market.