Coinbase experiences delays in Bitcoin withdrawals just like in 2017

  • Coinbase exchange suffers backlog in Bitcoin withdrawals but buy and sell services are not affected.
  • The challenge in withdrawals is attributed to network congestion that occurs mainly in bull markets, just like in 2017.

Bitcoin exchanged hands at its all-time high (ATH) but left 20,000 untouched on Monday. The skyrocketing prices are a great way to start the final months of the year. However, the leading cryptocurrency exchange in the United States, Coinbase, has reported similar delays in Bitcoin withdrawals identical to 2017’s bull market.

Coinbase withdrawals delay on the day Bitcoin hits all-time high

Network congestion during bull markets is not new to Bitcoin. Coinbase customers said they were experiencing delays in executing Bitcoin withdrawals as the flagship cryptocurrency rallied to its ATH for the first time since December 2017.

The cryptocurrency exchange cited network congestion in 2017 as it reported a backlog in Bitcoin withdrawals. Bull markets tend to be characterized by increased withdrawals, perhaps due to investors cashing out to take profits.

The delay in withdrawals in 2017 saw waiting periods of up to 12 hours before execution. At the time, Coinbase addressed the matter, saying:

Were experiencing delays due to a large number of bitcoin withdrawals. All funds remain secure. We understand this is frustrating for customers and will continue our efforts to process all these withdrawals as swiftly as possible.

Coinbase has also reported several issues amid busy trading periods in 2020. The challenges, mainly outages, have been rectified as soon as possible. It is not clear how long the current delay will last.

Bitcoin erases some gains after hitting ATH

The bellwether cryptocurrency has corrected to $19,630 after the impressive bullish momentum lost steam before hitting $20,000. Bulls are focusing on establishing higher support, preferably above $19,000. The bull market seems poised for more price action, eyeing $22,500 if the critical hurdle at $20,000 is broken.

BTC/USD price chart

BTC/USD 4-hour chart

On the flip side, the bullish outlook will be invalidated if Bitcoin fails to find support above $19,500 and $19,500. Besides, the TD Sequential indicator might present a sell signal on the 4-hour chart in the coming sessions. If sell orders increase, Bitcoin could spiral to test the 50 Simple Moving Average.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Shiba Inu price to erase half of the losses incurred and tag $0.000028

Shiba Inu (SHIB) has shed around 40% of its value due to concerns in global markets about the FED rate decision this evening against a background of geopolitical turmoil.

More Shiba Inu News

XRP presents buying opportunity before breakout to $1

XRP continues to test a new support zone in the $0.60 value area. Bottom likely in for XRP, relief rally, or trend change incoming. The Point and Figure chart shows a bullish entry opportunity.

More Ripple News

Cardano primed for relief rally towards $2.20

A brief technical and on-chain analysis on Cardano price. FXStreet's analysts evaluate why ADA could rebound swiftly. 

More Cardano News

IMF pushes El Salvador to drop Bitcoin as legal tender

The International Monetary Fund (IMF) has told El Salvador to remove Bitcoin’s status as legal tender. The IMF directors stated the move was due to concerns around financial stability, integrity and consumer protection.

More Cryptocurrencies News

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis