Coinbase Faces Major Service Disruption During AWS Outage

On October 23, 2025, the cryptocurrency industry experienced significant disruptions as a critical AWS infrastructure failure in the US-EAST-1 region caused widespread service outages across major trading platforms. The incident, which lasted nearly three hours during early Wednesday trading hours, originated from DNS resolution failures that impacted DynamoDB, a core database service supporting numerous AWS applications. Coinbase, one of the world's largest cryptocurrency exchanges, suffered complete mobile app failure during the outage, preventing users from accessing trading platforms and executing withdrawals. The service disruption highlighted the cryptocurrency industry's heavy reliance on cloud infrastructure providers and raised concerns about systemic risks in digital asset trading ecosystems. Robinhood and other major platforms also reported similar service interruptions, creating a cascading effect across the cryptocurrency market. This incident underscores the vulnerability of centralized trading platforms to third-party infrastructure failures and may accelerate discussions around decentralized alternatives that offer greater resilience against single points of failure. The timing of the outage during active trading hours amplified its impact, potentially affecting millions of traders and causing temporary liquidity issues across various digital assets. As the industry continues to mature, such infrastructure challenges present both obstacles and opportunities for innovation in building more robust trading systems.

AWS Outage Disrupts Major Crypto Exchanges Coinbase and Robinhood

A critical AWS infrastructure failure in the US-EAST-1 region caused widespread disruptions across cryptocurrency platforms for nearly three hours early Wednesday. The outage originated from DNS resolution failures impacting DynamoDB, a Core database service supporting numerous AWS applications.

Coinbase experienced complete mobile app failure during the incident, locking users out of trading and withdrawal capabilities. The exchange confirmed fund safety via social media while scrambling to restore services. Robinhood and other platforms relying on AWS infrastructure faced similar disruptions as the Northern Virginia data center processed 35-40% of global AWS traffic.

Engineers resolved most issues by 6:35 AM ET, but the incident exposed systemic vulnerabilities in centralized cloud dependencies for financial platforms. Market observers noted muted price action during the outage window, suggesting most traders avoided panic reactions.

Coinbase-Glassnode Survey Reveals Cautious Optimism for Bitcoin's Bull Run

Institutional and independent investors remain cautiously optimistic about Bitcoin's trajectory, according to a joint report from Coinbase Institutional and Glassnode. The survey, conducted between September 17 and October 3, 2025, polled 124 investors, with 67% of institutions and 62% of independents bullish on BTC over the next 3-6 months.

Divergence emerges in market cycle outlooks—45% of institutions believe the bull run is in its final phase, compared to just 27% of retail respondents. Macroeconomic risks dominate concerns across both cohorts, reflecting heightened sensitivity to Fed policy and global liquidity conditions.

Bitcoin's market dominance appears stable, with 39-40% of participants anticipating it will hold between 55-60%. David Duong, Coinbase Institutional's head of research, cites favorable regulatory tailwinds and potential rate cuts as catalysts that could unlock $7 trillion in sidelined capital for crypto markets.

Amazon Outage Highlights Web3 Resilience as Crypto Platforms Weather Cloud Disruption

AWS's US-East-1 region outage crippled centralized platforms like Reddit and Coinbase, exposing systemic vulnerabilities in web infrastructure. The DNS-related DynamoDB failure lasted through Monday morning PT, disrupting UK banking services and crypto exchanges alike.

Decentralized networks demonstrated notable stability during the crisis. While Coinbase reported delayed transactions, blockchain's distributed architecture prevented systemic collapse. The event fuels debates about Web3's capacity to mitigate single-point cloud failures.

Market observers note the irony of crypto exchanges relying on centralized cloud providers. As AWS engineers restored services, the outage served as a real-world stress test contrasting traditional and decentralized web architectures.

Coinbase Urges U.S. Treasury to Modernize AML Rules with AI and Zero-Knowledge Proofs

Coinbase has called for an overhaul of outdated anti-money laundering (AML) regulations, arguing that current frameworks under the Bank Secrecy Act are ill-suited for the digital asset era. The exchange proposes leveraging AI, APIs, and zero-knowledge proofs to enhance compliance efficiency while reducing privacy risks associated with redundant KYC checks.

In a letter to the Treasury Department, Coinbase emphasized the need for regulatory innovation to match the pace of financial crime evolution. Chief Legal Officer Paul Grewal criticized the existing system as being rooted in "paper-based protocols" from an era when fund transfers took days rather than seconds.

The proposal coincides with Coin Center's warning that traditional AML approaches applied to stablecoins could create surveillance overreach reminiscent of CBDC architectures. Treasury officials are currently reviewing industry feedback for potential updates to digital asset compliance guidance.

AWS Outage Exposes Crypto's Centralization Paradox

A cascading failure in Amazon Web Services infrastructure triggered widespread disruptions across the cryptocurrency sector on Monday. Major platforms including MetaMask, Coinbase, and OpenSea experienced extended downtime, revealing the industry's uncomfortable reliance on centralized cloud providers.

Infura's AWS-dependent architecture left MetaMask users staring at zeroed balances for hours, while Base and other ethereum Layer 2 solutions ground to a halt. The outage particularly impacted East Coast operations, forcing exchanges to implement emergency protocols.

The incident underscores a fundamental tension in Web3 development. While blockchain networks themselves remain decentralized, critical infrastructure components continue to depend on traditional cloud services. This single point of failure contradicts the movement's CORE ethos of censorship-resistant finance.

Why the Crypto Market Is Crashing Today and Where Bitcoin Could Head Next

The global crypto market plunged sharply over the past 24 hours as Bitcoin and Ethereum buckled under intense sell pressure. The downturn stems from a confluence of factors: massive ETF outflows, an AWS outage disrupting exchanges like Coinbase, and over $200 million in leveraged liquidations. Bitcoin briefly dipped below $108,000, while altcoins bled across the board.

Institutional liquidity evaporated as spot Bitcoin ETFs saw $1.23 billion in outflows this week—the largest since early summer. Friday alone recorded $366 million in withdrawals, reflecting growing risk aversion amid rising bond yields and macroeconomic uncertainty. The ETF exodus removed a critical market support pillar, accelerating downward momentum.

Technical infrastructure faltered as an AWS outage crippled trading platforms, compounding liquidity challenges. Market sentiment has rapidly shifted from Optimism to caution as traders brace for continued volatility. The crypto market now faces a stress test of its structural resilience.