As Bitcoin surpasses $41,000, will Coinbase be able to keep up with the rally?
Large cryptocurrency exchange Coinbase seems to be running smoothly as Bitcoin sets a new high above $41,000
Coinbase is under close scrutiny as Bitcoin’s price surpasses $41,000, following a slight correction tracked on Thursday after touching $40,000.
The US cryptocurrency exchange is known for its severe connectivity problems during peaks in trading activity. These disruptions allegedly prevented traders from taking advantage of Bitcoin Future price increases and corrections, depriving them of opportunities to exit or enter the market.
As previously reported by Cointelegraph, Coinbase has acquired Routefire, a platform for optimising trade execution, with the aim of better managing spikes in trading activity.
At the time of writing, Coinbase has not yet reported any connectivity issues on its platforms. According to its status page, the company has identified and resolved the root cause of the outage that occurred on Thursday.
Coinbase is not the only major exchange to experience problems during Bitcoin price rises. Binance also regularly goes offline when BTC tracks substantial increases. Commenting on the problem in December 2020, Binance CEO Changpeng Zhao noted that a 5% rise in Bitcoin is often accompanied by a 30-fold increase in trading volumes that could cause significant latency issues on the platform.
Bitcoin’s rise above $41,000 brings BTC into the top 10 of global asset classes, with a market capitalisation greater than tech conglomerates such as Facebook and Tencent. In addition to Tesla, Bitcoin will need to reach the $1 trillion market cap mark to overtake the likes of Google and Amazon.
Bitcoin chart over the last 24 hours
At the current market price, Bitcoin has gained more than 40% since the beginning of the year, and has almost quadrupled since the same day in 2020.