2024 March, 4, 07:12:08 PM

Coinbase Exchange Crashes Amid Market Rally, Users Report Zero Balances

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Coinbase, the largest cryptocurrency exchange in the US, encountered technical difficulties on March 4, 2024, leaving users with zero balances and delayed transactions.

Reasons for the Outage

Coinbase's incident:

  • Attributed to a surge in trading activities as Bitcoin approached its peak of $69,000.
  • Customer support acknowledged the issue, assuring users of fund safety.
  • Similar outage occurred less than two weeks prior, also during a market rally.

Impact on the Market

Bitcoin price

  • Retracted from its peak of $64,000 to a low of $58,200, erasing nearly $100 billion from its market capitalization.


  • Meme coins emerged as top gainers amidst the broader market rally.

Coinbase's Response

  • Brian Armstrong, Coinbase's CEO, acknowledged the outage, citing a "large surge of traffic."
  • Customer support reassured users of fund safety despite potential errors in transactions.

Broader Market Sentiment

  • Post-traumatic stress from the FTX debacle has heightened investor anxiety.
  • CNBC's Ran Neuner attributed the outage to "full tilt bull market frenzy."

Implications for Investors

  • Investors are advised to remain vigilant and consider alternative exchanges during periods of high market activity.
  • The outage highlights the importance of diversifying cryptocurrency holdings to mitigate risks associated with centralized exchanges.

Frequently Asked Questions on Cryptocurrencies


  • Definition: The largest cryptocurrency by market capitalization, designed as a decentralized digital currency.
  • Distinctive feature: Not controlled by any single entity, eliminating the need for third-party involvement in financial transactions.


  • Definition: Any cryptocurrency other than Bitcoin.
  • Variations: Some consider Ethereum a non-altcoin, while others classify it as the first altcoin forked from Bitcoin.
  • Characteristics: Typically offer unique features or improvements over Bitcoin.


  • Definition: Cryptocurrencies designed to maintain a stable price, backed by a reserve asset.
  • Mechanism: Value pegged to a commodity or financial instrument, such as the US dollar.
  • Purpose: Provide stability for investors and serve as an on/off-ramp for cryptocurrency trading.

Bitcoin Dominance

  • Definition: Ratio of Bitcoin's market capitalization to the total cryptocurrency market.
  • Significance: Measures investor interest in Bitcoin.
  • Behavior: High dominance often signals a bull run, while low dominance indicates altcoin rallies.

Table: Coinbase Outage Timeline

Date Event
February 28, 2024 Coinbase outage, users report zero balances
March 4, 2024 Second Coinbase outage during market rally
March 4, 2024 Coinbase acknowledges surge in traffic and assures fund safety

Coinbase's recent outage highlights the challenges of managing high trading volumes during periods of market volatility. Investors should approach centralized exchanges with caution and consider alternative options for diversification. Despite the temporary setback, the broader cryptocurrency market remains bullish, with Bitcoin leading the charge and altcoins poised for gains.

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