Coinbase, Binance Crash as Investors Sell Off Crypto

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Top cryptocurrency exchanges including Coinbase, Binance, Gemini and Kraken have all reported technical issues on Wednesday as digital coin prices took a nosedive.

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Bitcoin’s price fell by 30% since Tuesday, dipping as low as $30,201.96 — its lowest since January, according to CoinDesk, as reported by The Wall Street Journal. CNBC noted that Wednesday’s decline pushed Bitcoin’s loss for the past week to more than 40%.

Bitcoin isn’t the one of the volatile currencies that’s down. Ether, the digital coin behind the Ethereum blockchain, dipped below $2,000 — a 40% plunge in under 24 hours, reports CNBC.

Crypto’s sudden weakness seems to be due to a temporary reversal in its acceptance, notes CNBC. Elon Musk announced last week that Tesla would no longer accept Bitcoin as a form of payment due to environmental concerns. However, Musk tweeted “diamond hands” emoji on Wednesday, suggesting that Tesla is not selling its existing Bitcoin.

JPMorgan also announced switching back to gold as they felt institutional investors are giving up Bitcoin. “The Bitcoin flow picture continues to deteriorate and is pointing to continued retrenchment by institutional investors. Over the past month, Bitcoin futures markets experienced their steepest and more sustained liquidation since the Bitcoin ascent started last October,” their analysts said in a note to clients.

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China has also banned financial companies from providing services for crypto trading on Tuesday. The Chinese government is developing its own cryptocurrency, the digital yuan, controlled by its central bank, according to the WSJ.

BeInCrypto News reported that both Binance and Coinbase are claiming issues with the withdrawal process for Ethereum and ERC-20 tokens, blaming the hold-up on network congestion. These technical issues are after the values of digital currency started to plummet within the past 24 hours.

Coinbase Support tweeted that it has put a fix in place and will be monitoring the results.

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