Bitcoin (BTC) surged to a whopping $19,697 on GDAX around mid-day – a whopping $5000 price difference between the crypto on GDAX and other exchanges around the world – and shortly after that the exchange went down for a few minutes.
The unprecedented turn yesterday for BTC on GDAX left an a long trail of altcoin carnage in its wake. BTC on GDAX started its breathtaking run of a whopping $2000 jump in a matter of 20 minutes. From $17,000 to $18,000 it took fifteen minutes while from $18,000 to $19,000 it took only five minutes until it reached a point of $19,697. At this point BTC on other exchanges was trading at $16,096 (average) across different exchanges. While the disparity in BTC trading prices isn’t unheard of, but this huge a difference is definitely unseen.
By 11:30 a.m. ET, BTC on GDAX was at $19,697 and was just a couple of hundred dollars away from the all-time high of $20,000. This is when things took a downward turn with prices plunging to $15,100 by 11:55 am. Then in just three minutes from that point at 11:58, GDAX went down all all markets were moved into “Post-Only” mode, meaning that traders could place limit orders but could not execute any trades. Bitcoin remained frozen at $16,299.
While there have been no confirmations from GDAX as to what went wrong at that particular moment. Visiting GDAX only shows “minor service outage” message. Some observers believe that either GDAX’s system had encountered an error or had been breached by hacker(s). The outage didn’t last long though and in less than 30 minutes trading resumed at 12:25 p.m. with bitcoin price recovering to global equivalent levels. At the time of writing, bitcoin price on GDAX is reflecting at around $16,000.