Cryptocurrency panic crash! Crazy selling caused Binance, Coinbase and other exchanges to crash

During the crypto market crash on Wednesday, dozens of trading platforms or data websites experienced downtime, including Binance, Coinbase, Bitfinex, Kraren, Gemini, Kucoin, Huobi, CMC, Coindesk, Bittrex, etc.

Around 9 a.m. ET on Wednesday, Coinbase experienced “intermittent outages,” while Binance suspended Ethereum and ERC20 token withdrawals due to network congestion, Gemini trading was lagging, and Kraken noted “connectivity issues” for users.

In response, Coinbase said in a statement: “We have discovered some issues with Coinbase and Coinbase Pro, and some features may not be fully functional. We are currently investigating these issues and will provide an update as soon as possible.”

Coinbase was down for about an hour and a half and has now returned to normal.

In the S-1 filing Coinbase filed ahead of its direct listing, the company mentioned that volatility would affect service.

“Sudden changes in volatility or market movements could place significant strain on our platform and infrastructure, which could result in the unexpected suspension of service for parts of our platform or our entire platform,” Coinbase wrote in its S-1.

Some users expressed frustration on social networks about the Coinbase website and app outages, as they wanted to take advantage of the current plunge in digital cryptocurrency prices. As a result, Coinbase's stock price fell 10% in early trading today.

The cryptocurrency plunge led to a massive sell-off in the market. The Dow Jones Industrial Average fell 586 points at one point during the session, and the S&P 500 fell 0.9%. The tech-heavy Nasdaq Composite Index fell 0.7%, with Microsoft, Facebook, Alphabet and Apple all falling. The sell-off became more widespread as weakness in technology stocks spread to other sectors.

Meanwhile, hedge funds and asset managers bought Bitcoin on the dip.

Aya Kantorovich, head of institutional sales at FalconX, told The Block: “TradFi Asset Management is buying Bitcoin through our platform.”

In addition, before the market rebounded slightly, Genesis Global Trading had notified its counterparties that macro funds had begun buying at $35,000.

Bitcoin plunged nearly 30% to $31,000 today, and after a deep V trend, it rebounded to above $38,000. Its market value has evaporated by more than $500 billion from its peak.

Bill Miller, a legendary hedge fund manager and value investor in the United States, told CNBC on Wednesday that he is not worried about the decline of Bitcoin and that its fluctuations are "quite normal."