GDAX, the trading exchange subsidiary of Coinbase, crashed after the bitcoin price exploded past the $19,000 USD price point. This new surge is an unprecedented bout of FOMO (“fear on missing out”) that seemingly reflects an impending wave of mainstream adoption.
The Herd’s Arriving?
At around 11:30 AM EST on December 7th, the bitcoin price exploded past the almost unbelievable $19,000 price point before Coinbase and its associated exchange GDAX — the most popular entry points for U.S. buyers — crashed for its users.
Before the flash price surge, Bitcoin holders already had reason to be ecstatic, as the price had already hit a new all-time high of $17,000 just before briefly exploding past $19,000.
At press time, BTC is now settling in the $16,000 price range — a whopping thirty percent increase from just 24 hours ago.
Per CoinMarketCap, three exchanges are driving the girth of the current price volume. They are Bitfinex ($1.96 billion), Bithumb ($1.8 billion), and GDAX ($1.25 billion).
Notably, the bitcoin price is still over $19,000 on Bithumb at press time.
Factoring in all other exchanges, the global bitcoin trading volume has now eclipsed $16.6 billion on the day. That puts the number one cryptocurrency’s market capitalization at over $275 billion for now.
Many said a day like this could never come. But now, many wonder what the days to come look like as the birth of the age of cryptoeconomics seems decisively upon us.
Bitcoin could certainly retrace, even extensively, at any moment. But now that the crypto space has seen BTC at $19,000 on GDAX, there will undoubtedly be more “Bitcoin believers” coming out of the woodwork than ever. And that’s great for the ecosystem going forward.
Coinbase and GDAX Struggling with “Hyper-Growth,” Says Coinbase CEO Armstrong
Coinbase and GDAX’s crashes today are reminiscent of the crashes the space saw over the summer and during late November this year, when new users exploded onto the sites like never before.
In a recent interview on Bloomberg, Coinbase CEO Brian Armstrong spoke to the struggles the exchanges are facing in trying to satisfactorily service a rapidly exploding user base:
“We are going through this period of growth that is almost never seen in business. It’s really difficult, to be honest, to keep up with this amount of demand. We’re not servicing our customers to the level they deserve at the moment. So that’s really frustrating to see, but it’s my job from the top to ensure we’re going to get there.”
Well, Armstrong’s certainly talking the right talk. Let’s hope he walks the right walk in the months ahead as Coinbase continues to hire hundreds of new customer service agents into 2018.
*UPDATE: Coinbase is back online as of around 1:30 PM EST.
What’s your take? Do you think the bitcoin price will hit $20,000 by Christmas? Let us know in the comments below!
Images via GDAX, Steemit; video via Bloomberg Technology