Can Coinbase keep up with Bitcoin rallying beyond $41,000?
Coinbase seems to be operating smoothly, even with Bitcoin setting a new price above $41,000.
Coinbase is under the microscope with the price of Bitcoin (BTC) exceeding $41,000 just after a small setback after reaching $40,000 on Thursday.
The U.S.-based crypto exchange is known to face serious connectivity problems during periods of peak trade activity. In fact, these disruptions supposedly prevented traders from taking advantage of gains and price declines, robbing them of opportunities to make profits and re-enter.
As Cointelegraph recently reported, Coinbase has acquired Routefire, a platform for enhanced trade execution, as part of an effort to better handle peak periods of cryptomeda trading activity.
To date, Coinbase has not reported any connectivity issues on its exchange platforms. According to its status page, the company identified and corrected the root cause of the service interruption on Thursday.
Coinbase is not the only major exchange to suffer problems during Bitcoin’s price increases. BitQT also goes offline routinely when BTC prints large price gains. Commenting on the problem in December 2020, Binance CEO Changpeng Zhao noted that 5% gains in Bitcoin price are often accompanied by a 30-fold increase in trading volumes, which can cause significant latency problems on the platform.
Bitcoin’s rise above the $41,000 mark places BTC among the top 10 global assets, with a market capitalization superior to technology conglomerates such as Facebook and Tencent. Above Tesla, Bitcoin will need to surpass the $1 trillion market capitalization mark to outperform companies like Google and Amazon.
At the current market price, Bitcoin has risen more than 40% in the year-to-date and almost quadrupled since the same time in 2020.