Today in crypto, a Cloudflare outage temporarily blocked access to several cryptocurrency platforms and social media sites. A large cohort of spot Bitcoin exchange-traded fund (ETF) investors is underwater as Bitcoin dipped further below $90,000, while Bitwise’s Matt Hougan and BitMine’s Tom Lee have tipped a bottom this week.
Crypto sites, social media channels hit with Cloudflare outage
Several cryptocurrency platforms and social media channels reported network disruptions on Tuesday after a Cloudflare incident temporarily blocked access to the front end of numerous crypto websites. The company attributed the issue to an “internal service degradation.”
The outage affected the user-facing services of major exchanges, including Coinbase and BitMEX, as well as platforms such as Blockchain.com, Ledger, Toncoin and DefiLlama. Kraken also reported downtime but later said it had implemented a fix.
“[T]he root cause of the outage was a configuration file that is automatically generated to manage threat traffic,” a Cloudflare spokesperson told Cointelegraph. “The file grew beyond an expected size of entries and triggered a crash in the software system that handles traffic for a number of Cloudflare’s services.”
Although many crypto platforms aim for decentralization, they still rely on centralized servers, leaving them vulnerable to downtime during outages.
Average Bitcoin ETF investor now underwater as BTC falls below $89,600
Bitcoin’s rapid pullback has pushed the average US spot Bitcoin ETF investor into the red for the first time since the products launched.
The flow-weighted cost basis across all US Bitcoin (BTC) ETFs sits near $89,600, a level Bitcoin fell below on Tuesday, leaving the cohort underwater, Glassnode analyst Sean Rose told Bloomberg on Tuesday. Some early buyers, particularly those who entered when Bitcoin was between $40,000 and $70,000, still remain in profit.
“Even with the average ETF cost basis above spot, most ETF holders are long-term allocators, so being underwater doesn’t trigger quick exits,” Vincent Liu, the chief investment officer at quantitative trading firm Kronos Research, told Cointelegraph.
“In this risk-off environment, liquidity and macro remain the key drivers. Tight conditions can turn losses into downside pressure, while clear easing signals lift anchors,” Liu added.
On Monday, US spot Bitcoin ETFs extended their multiday bleed, with a combined $254.6 million in outflows, according to data from Farside Investors
Bitcoin falls below $90,000: BitMine, Bitwise execs tip bottom this week
Bitcoin could hit a bottom as soon as this week, according to BitMine chairman Tom Lee and Bitwise Asset Management chief investment officer Matt Hougan, as Bitcoin briefly dropped below $90,000, its lowest price in seven months.
During an interview on Monday with CNBC, Lee said crypto is suffering after the big liquidation event on Oct. 10, and traders are still nervous about whether the US Federal Reserve will cut rates in December.
“I think that’s all creating this downside pressure. But I think the good news is there are signs of exhaustion. I did speak with Tom Demar of Demar Analytics, and he thinks there are signs that would look like a bottom that could be occurring sometime this week,” Lee said.
Hougan agreed that a bottom is incoming soon and also added that current price levels present a “generational opportunity” and a “gift for long-term investors.”
Bitcoin briefly fell under $90,000 on Tuesday, according to CoinGecko, a price last seen in April.
Earlier this week, crypto executives told Cointelegraph that the recent weakness in the cryptocurrency markets was due to a combination of factors, including outflows from exchange-traded funds, long-term sales by whales, and escalating geopolitical tensions.
