Coinbase Denies Imposing $5,000 Weekly Bitcoin Withdrawal Cap Amid Social Media Storm

Coinbase, a renowned cryptocurrency exchange, has dismissed circulating chatter suggesting the imposition of a $5,000 weekly Bitcoin withdrawal cap. This move to clarify comes after a post on X (the platform previously known as Twitter) took the social media scene by storm.

On October 24, an X user uploaded a post alleging that a new policy at Coinbase hampered him from withdrawing more than $5,000 of Bitcoin each week. This post quickly caught fire, racking up an impressive over 250,000 views and drawing interactions in the form of nearly 2,000 likes and over 420 shares.

Among those who took note of this intriguing claim was Chris Blec, a prominent figure in the cryptocurrency research community. Chris Blec expressed interest in validating this claim, prompting a swift response from a representative of Coinbase. Speaking to Cointelegraph, the spokesperson clarified that the stated limitations in the post were not consistent with Coinbase's practices. They emphasized that withdrawal conditions on Coinbase are typically tethered to the user's selected payment method. They advised users to refer to the exchange's definitive policy concerning account constraints and withdrawals.

Adding a layer to this narrative, around the same time this rumor was swirling, Coinbase encountered a transient snag in its trade processing operations. As per the official status update from Coinbase, trading glitches surfaced on October 23. However, the exchange acted quickly, and within the span of an hour, confirmed that the hiccup was resolved. They also assured their user base that the team was vigilantly overseeing trading behaviors for any lingering complications.

This minor setback for Coinbase coincided with a vibrant trading phase across the cryptocurrency domain. Bitcoin's value notably soared, reaching a remarkable $35,000 mark, a peak it hadn't touched since the prior May.

Moreover, experts believe that transparency in addressing such claims reinforces trust within the crypto community. Maintaining open communication channels between exchanges and users remains crucial in such a dynamic and evolving landscape. Ensuring that misinformation doesn't create unwarranted panic is vital for both novice and veteran traders alike.

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