Soaring Bitcoin Prices and Exchange Meltdowns: Is More Market Competition Needed?

Hailed as one of the most topsy-turvy days in the history of the cryptocurrency, the price of bitcoin plunged more than $1,000 in the span of about 10 minutes on November 29, hours after the cryptocurrency hit a new all-time high above $11,000. In the aftermath sell orders began piling up amid a surge in traffic resulting in intermittent outages at a number of bitcoin exchanges.

These periods of high volume activity where the price of bitcoin comes galloping out of the stables only to pump the brakes when demand soars appear to be growing in frequency. November 29’s 11 percent decline marked the lowest price observed since November 26 when bitcoin bottomed out at a low of $8,795.50.

Today’s price has since rebounded to the mid-$9,000 range at the time of writing.

Some exchanges were impacted more than others during this high demand period. By way of example, it was reported that cryptocurrency traders utilizing Coinbase, arguably the world’s largest bitcoin exchange experienced difficulties in accessing their accounts and executing market orders during this period…

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