Coinbase Users See Zero Balance Amidst Bitcoin Surge; Weekend Trading Declines
Summary:
As Bitcoin's value hit $64,000, various Coinbase users reported zero balances in their accounts, sparking concern. This technical issue was later rectified, with full balances restored. Despite sporadic technical issues, Coinbase continues to thrive, recently reporting robust Q4 earnings. Meanwhile, weekend Bitcoin trading volume has diminished, largely attributed to institutional involvement and the advent of spot ETFs. The upward trend in Bitcoin prices followed the announcement that MicroStrategy had purchased an additional 3,000 BTC, solidifying itself as the largest Bitcoin holder among publicly listed companies.
As Bitcoin soared to a peak of $64,000, a wave of Coinbase users voiced their distress as their account balances showed as zero. Contradicting the joyous atmosphere brought by the BTC price surge, trading statistics from Kaiko underlined a decline throughout the weekend. Amidst Bitcoin's ascension to $64,000 on February 28, an outpouring of Coinbase users voiced frustration as their account balances displayed zero. Coinbase confirmed the zero balance glitch, assuring users their assets remained secure despite the technical anomaly.
The platform's support team announced, "We confirm some users seeing a zero balance across their Coinbase accounts and possibly encountering issues with purchase or sale transactions. Our team is currently investigating this and will be providing updates soon. Your assets are secure."
The problem was reportedly corrected later, as numerous users affirmed the return of their full balances on their accounts. Despite infrequent technical difficulties, Coinbase finds itself in a favourable position to make the most of the surging crypto market. On February 15th, the company posted robust fourth-quarter earnings boasting a net income of $273 million. This marks their first quarter of profitability since the bull run of 2021.
Bitcoin, the pioneering cryptocurrency, collected a 3.79% rise within the 24 hours leading up to 8:20 am UTC, bringing its value to $58,504, a first in over two years. CoinMarketCap data indicates a 13.5% and 38% rise on Bitcoin for the weekly and monthly charts, respectively.
Significantly, this price surge came two days following the announcement that MicroStrategy, led by Michael Saylor, had added another 3,000 BTC to their portfolio, amounting to a total purchase of $155 million at an average price of $51,813, between February 15th and 25th. With an acquisition of 193,000 BTC worth $6.09 billion at an average price of $31,544, MicroStrategy takes the lead as the largest Bitcoin holder among publicly listed companies.
Bitcoin trading seems to slump over the weekends with the advent of spot ETFs and the involvement of institutions, as is noted by crypto research firm, Kaiko. Five years back, weekend Bitcoin trading constituted a quarter of the total volume, but this figure has now dwindled to 13% in 2024.
This drop in weekend trading transpired in both the US and offshore, though the latter maintained a slightly elevated share of 15% compared to 11% in the US. Since spot Bitcoin ETFs were introduced in the US, Bitcoin liquidity has demonstrated a strong comeback, as indicated by Kaiko. However, it's been observed that few transfers occur between the spot Bitcoin ETF issuers and exchanges over the weekends.
This report does not include any investment advice or recommendations. Investments and trading always carry risks, and readers are encouraged to conduct their own research prior to making any decisions. Additional inputs provided by Geraint Price, Sam Bourgi, and Felix Ng.
Published At
2/28/2024 10:49:16 PM
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