Coinbase has debunked recent rumors circulating on social media that it had implemented a $5,000-per-week limit on Bitcoin withdrawals. The controversy erupted after Colin Brown took to Twitter claiming that Coinbase had introduced a new withdrawal policy, capping Bitcoin withdrawals at $5,000 per week starting on October 13.
Brown, a Coinbase customer for a decade, urged others to move their Bitcoin to self-custody wallets, sparking concern and outrage within the crypto community. His post garnered significant attention with over 378.6k views, 500 retweets, and numerous comments.
In an update to his original post, Brown revealed that Coinbase Support had contacted him, verified his account, and removed the withdrawal limit on his Bitcoin. However, he expressed dissatisfaction with their explanation for the incident, citing the use of algorithms as the reason for the temporary freeze. He also emphasized the importance of self-custody for Bitcoin holders and criticized the notion of weekly withdrawal limits.
Coinbase swiftly responded to these claims, with a company spokesperson addressing the situation. The spokesperson clarified that the $5,000-per-week withdrawal limit allegations were “inaccurate” and not part of Coinbase’s official policies.
Withdrawal limits, according to Coinbase, depend on the user’s chosen payment method and are not subjected to a fixed weekly cap. Users were encouraged to consult Coinbase’s official account limits and withdrawals policy for accurate information.
The timing of these baseless rumors coincided with a brief disruption in Coinbase’s trading operations. On October 23, Coinbase reported difficulties in processing trades around 6 pm UTC.
However, the exchange resolved the issue in less than an hour and assured users they were closely monitoring trading activities for further glitches. This incident occurred amid a frenzy of trading activity, as BTC’s price skyrocketed to as high as $35,000.
Bitcoin’s Price Surge
The cryptocurrency market witnessed BTC’s price surge past $31,000, eventually reaching $35,000 on that same day. This bullish trend was a significant shift from the bearish sentiment that had gripped the crypto industry earlier in the year, with Bitcoin trading near $15,000.
However, the renewed optimism in the market is largely attributed to the anticipation of introducing Bitcoin exchange-traded funds (ETFs), which experts believe could greatly simplify BTC investment and attract a broader range of investors to the cryptocurrency.
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