As volatility in bitcoin (BTC-USD), ethereum (ETH-USD), and other cryptocurrencies skyrocketed Wednesday, major cryptocurrency networks such as Binance and Coinbase (COIN) experienced service disruptions.
Coinbase, the largest cryptocurrency exchange in the United States, said in a status report Wednesday morning that it was investigating delays in ethereum and ERC-20 token withdrawals due to network congestion, and that the Coinbase platform was experiencing periodic downtime.
In an email to Yahoo Finance, a Coinbase spokesperson said, “We’re seeing some problems on Coinbase and Coinbase Pro, and some features might not be running normally. We’re looking into these problems right now and will email you as soon as we can.”
Binance, the world’s largest crypto exchange, has also halted ethereum and ERC-20 withdrawals for the time being. In a separate announcement, it said that trading for all Binance Leveraged Tokens had been temporarily halted, with the exception of BTCUP, BTCDOWN, and ETHUP.
As investors flooded the network with trades, smaller cryptocurrency exchanges such as Poloniex reported similar problems with Ethereum and ERC-20 withdrawals.
Cryptocurrencies continued to lose ground on Wednesday, with bitcoin falling more than 18% to trade below $36,000. Prices fell below their closely tracked 200-day moving average, marking the lowest level since early February. Just a week after hitting an all-time high of over $4,300, Ethereum, the second-largest cryptocurrency by market capitalization, fell more than 24% to trade below $2,500.
The drop in digital token prices over the past week coincided with Tesla CEO Elon Musk’s announcement that the electric car maker would no longer accept bitcoin as payment for cars, just three months after the company first announced it would accept the digital tokens. The People’s Bank of China reiterated on Wednesday that cryptocurrencies cannot be used for payments, exacerbating the downward trend in crypto prices.