Crypto Markets Crash While Binance And Coinbase Struggle

Crypto markets crash while major crypto exchanges such as Binance and Coinbase suffer technical issues as the entire market saw a sudden drop. All cryptocurrencies are having a hard time now after bitcoin got rejected at the $12,000 threshold for the third time in a month so let’s find out more in our crypto news today.

The resulting increase in trading volume was a huge problem for a few cryptocurrency exchanges, mainly Coinbase and Binance. The Korean exchange Bithumb seems to have been raided by the police in an alleged fraudulent token sale. Most of the crypto markets crashed and both Binance and Coinbase are experiencing problems with their services.

We are aware of some temporary difficulties accessing https://t.co/QILSkzOI1K.

Rest assured our team is working on it.

Thank you for your patience and apologies for any inconvenience caused.

— Binance (@binance) September 2, 2020

After reaching a peak market capitalization of more than $406 billion overnight, the crypto market entered into a slight downtrend which gained momentum a few hours ago. The total market cap of all cryptoucurrencies dropped to $382 billion which is a drop of 6.1% in the past day. All major cryptocurrencies were hit hard by the dump during the crypto market crash. Despite reaching $12,000 yesterday, Bitcoin is trading at just $11,362 which is down by 4% to reach $446. This is now the third time in a month that Bitcoin was rejected at the $12,000 threshold sending the entire market down.

Other top ten cryptocurrencies such as Chainlink and Polkadot are having a hard time as well and are down by 6 to 11% in the past day. The dramatic sell-off affected Tether which is now selling below the dollar peg while other stablecoins such as DAI, True USD, and USD coin are unaffected. Today’s crash had a knock-on effect on major exchange platforms which seem to have buckled under the load.

The popular US brokerage platform Coinbase announced that the sending service for the range of different cryptocurrencies that went down. The incident affected Bitcoin, Tezos, Bitcoin Cash, and 22 cryptocurrencies that were listed on the platform, leaving Coinbase customers unable to transfer their cryptocurrencies to other users. Less than 30 minutes later, Coinbase resolved the problem and resumed the sending services.

Binance reported issues with the services as the users are left unable to access the platform. Binance seems to have resolved the problems and the website is operational.