Binance suffers from technical issues after the Bitcoin spike

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Last Updated on 20 October 2020 by CryptoTips.eu

Binance exchange suffered from a temporary issue in the last 24 hours as users were unable to access its web platform. Binance had initially given a generic response saying that they were working on the difficulties experienced. 

Rest assured, our team is working on it. In the meantime, please use the desktop app.

However the problem has been resolved with users able to access their accounts for trading and transactions. The problems lasted for 30 minutes, before services were fully restored and during that time there was a predictable dip in the Bitcoin price.

Binance Chief Changpeng Zhao tweeted that the outage was caused by some gateway errors and that some regions were affected by the issues. He further reassured users that their funds were safe.

This is not the first time that the leading crypto exchange is closing down due to performance issues and it typically coincides with periods when Bitcoin volume surges. The Binance platform seems to be unable to support the large sums of traffic when Bitcoin has a big price move.

This latest incident is likely caused by the price of Bitcoin which rose in the past 24 hours by more than 2% and hitting the $12k mark.

Bitcoin spiked in response to the comments of U.S Fed Chairman Jerome Powell who acknowledged that the US wants to be at the forefront of the CBDC development.

Powell also stated that the US was exploring the positive or negative aspects of CBDCs and monitoring its use case.

CBDCs development has been a major aspect in the finance sector with several governments considering developing their own digital currencies.