Crypto exchange Coinbase has denied the existence of a $5,000-per-week limit on Bitcoin (BTC) withdrawals, refuting rumors that circulated on social media. The controversy began when a user on X (formerly Twitter) claimed in a post on October 24 that Coinbase had implemented a policy restricting BTC withdrawals to a maximum of $5,000 per week. The post gained significant attention, with over 250,000 views, more than 420 retweets, and nearly 2,000 likes. Crypto researcher Chris Blec also took notice of the claim and asked for verification.
However, a spokesperson from Coinbase stated that these claims were false and that there was no such policy in place. The spokesperson clarified that the ability to withdraw from Coinbase depends on the payment method being used. To understand account limits and withdrawals, users were directed to consult Coinbase’s official policy on the matter.
Simultaneously, Coinbase encountered temporary difficulties processing trades, which coincided with the spread of the unfounded rumors regarding withdrawal limits. According to Coinbase’s official status page, the exchange began experiencing trade processing issues around 6 pm UTC on October 23. However, within an hour, Coinbase provided an update stating that the problem had been resolved, and the team was monitoring trading activity for any ongoing issues.
The trading delays on Coinbase occurred during a period of heightened trading activity in the overall market, as the price of Bitcoin soared to as high as $35,000, a level not seen since May of the previous year.
Coinbase’s swift response to address the rumors and promptly resolve the trade processing issues demonstrated the exchange’s commitment to its users. While unsubstantiated claims can easily spread on social media, Coinbase’s official clarification emphasized the importance of referring to accurate information provided by the platform.
This incident also highlighted the volatility of the cryptocurrency market, with rapid price fluctuations causing increased trading activity. As Bitcoin reached new highs, traders were likely eager to take advantage of the surging prices, leading to heightened demand on exchanges like Coinbase. The temporary trade processing difficulties served as a reminder of the challenges that exchanges face in managing and executing a high volume of transactions during peak times.
In conclusion, Coinbase firmly denied the existence of a $5,000-per-week limit on Bitcoin withdrawals, debunking the rumors that had gained traction on social media. The exchange’s spokesperson clarified that withdrawal capabilities depend on the chosen payment method. Additionally, Coinbase experienced temporary trade processing difficulties but quickly resolved the issue and continued to monitor trading activity. This incident highlighted the volatility of the cryptocurrency market and the challenges that exchanges face in managing high volumes of transactions during periods of heightened trading activity.