Tesla-Driven BTC Frenzy Took Down Binance’s Crypto Exchange

The Tesla-driven BTC frenzy resulted in massive incoming traffic to Binance which caused the exchange to crash so let’s read more in today’s Binance news.

Over the morning, Tesla purchased $1.5 billion in Bitcoin and initiated the Tesla-driven frenzy right after the news emerged, the leading crypto by market cap exploded to $45K reaching a new high. When the new record was set, the resulted FOMO made Binance crash because of the high incoming traffic so what does this mean for BTC?

At the height of the last crypto hype bubble in 2017, the crypto exchanges were not able to keep up with the new user registration. The investors scrambled to purchase BTC and altcoins proved to be too much for the industry to handle at that time and were responsible for the bubble bursting back in the day. For about four years, cryptocurrencies like BTC have never been stronger. Amidst the fiat money printing, the limited supply assets are showing their true value and BTC has increased from the pandemic from $3800 to $44,000 and is still climbing. It’s no longer only the individual investors that seek to protect their wealth to make some cash as businesses are buying crypto to preserve the company treasury reserves.

Massive incoming traffic. Some lags observed in some regions. Auto scaling. Should catch up soon. All because of Elon.

— CZ 🔶 Binance (@cz_binance) February 8, 2021

The trend was started by Microstrategy and later Square but the most recent corporation purchasing BTC could be the most important yet. This morning, the news broke that Tesla acquired $1.5 billion in BTC according to an SEC filing, and the price action skyrocketed on the news with another wave of FOMO starting. The buying frenzy was enough to take binance down which is still having a hard time recovering. Binance’s CEO Changpeng Zhao revealed that the massive incoming traffic was the culprit and it was all because of Elon Musk.

The Tesla CEO was toying with the crypto community once he added the Bitcoin hashtag on his Twitter Bio while promoting Doge as well. Both coins were in the spotlight but random tweets that troll the internet or adding the update to a Twitter bio don’t have the same weight as the purchase of $1.5 billion which is a vote of confidence in the cryptocurrency from Elon Musk. Musk said that BTC is on the verge of being more adopted while Musk believes that the day is here and now.