Bitcoin Surges 2.5% to $111,172 After Coinbase Crash

On Thursday, July 10, during the early hours of the Asian trading session, Bitcoin (BTC) reached a new all-time high of nearly $112,000. This surge coincided with an unexpected crash on Coinbase’s servers, sparking bullish speculation among investors. Historically, crashes on Coinbase have often preceded significant price surges in Bitcoin, and this time was no different. Within minutes of the outage, bullish messages flooded social media as traders celebrated the potential for a new all-time high.

Coinbase users began reporting issues with accessing the platform early on Thursday. Unlike previous incidents where such outages would cause panic, this time traders saw it as a positive sign. The context for this optimism lies in the historical pattern where Coinbase crashes have often been followed by substantial increases in Bitcoin's price. True to form, Bitcoin quickly reclaimed the $111,000 mark, trading at $111,172 with a 2.5% gain in the last 24 hours. On Binance, Bitcoin hit an all-time high of $111,999.

While memes and market jokes have been prevalent, there are also solid indicators supporting a Bitcoin pump. The rally followed the release of the Federal Open Market Committee (FOMC) minutes for June, which suggested that the U.S. could be preparing for an interest rate cut in its upcoming July 30 meeting. Lower interest rates typically encourage risk-taking behavior among investors, benefiting crypto markets. Additionally, on July 9, Bitcoin spot ETFs recorded $218 million in net inflows, with Ethereum ETFs registering $211 million in the same period. This marked the fifth consecutive day of inflows into Bitcoin ETFs, indicating strong bullish sentiment from institutional investors.

Coinbase’s response during the outage added to the speculation. While the platform was experiencing connectivity issues, Coinbase’s official Twitter account posted a single tweet featuring the Bitcoin symbol “₿” with no caption or explanation. This cryptic message was interpreted by many as a signal to investors, fueling further speculation about the intentionality behind the outages. Although there is no evidence to suggest that Coinbase purposely causes outages to pump prices, these incidents have become part of crypto lore, adding to the mystique surrounding such events.

With Bitcoin now above $111,000, attention is turning to the next resistance levels. If institutional flows continue and macroeconomic conditions remain favorable, analysts believe BTC could push toward $120,000 in the short term. The July 30 FOMC meeting will be a critical event to watch, as a confirmed rate cut could provide additional fuel for crypto markets. Overall, Bitcoin’s surge past $111K is seen as more than just a glitch; it could be a signal of even bigger things to come.