Cryptocurrencies Skyrocket as Traditional Finance Stumbles: Microsoft Outage Halts Airlines, Stocks, But Blockchain Marches On

• The financial market is facing severe disruptions due to a Microsoft outage, impacting banks, airlines and stock exchanges.

• The cryptocurrency market is not affected, proving the reliability of blockchain technology.

The financial market has faced significant challenges today following a widespread outage at Microsoft. This outage has affected most companies, especially the London Stock Exchange, airlines, and banks. However, the cryptocurrency market is still quite stable, with industry leaders optimistic about the role of blockchain.

Cryptocurrency market unaffected by disruption

As traditional financial institutions grapple with the effects of Microsoft’s glitch, the cryptocurrency market has not been affected. As of this writing, there have been no significant outages reported by major cryptocurrency exchanges, DeFi platforms, or protocols; trading volumes are increasing. Industry executives attribute this stability to the inherent strengths of blockchain technology, which operates independently of centralized financial systems.

Nansen, a blockchain intelligence firm, has claimed that decentralized finance (DeFi) models are more secure than traditional centralized ones. The company said that the use of blockchain technology could potentially halve such disruptions in the future. Solana co-founder Anatoly Yakovenko shared similar views on X, stating that conventional systems are just ‘thin clients in one giant Windows computer’.

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Cryptocurrency users also shared their opinions, saying that blockchain can help eliminate errors in financial transactions. One user, @emilyjnicolle, observed, “A Microsoft glitch has left the world in shock, yet… cryptocurrency exchange status pages remain clear?”

However, some market commentators have expressed their concerns about the indirect effects, even though the cryptocurrency market seems stable for the time being. Although Microsoft’s outage has not had an impact on the structures of cryptocurrency companies, it could affect macro trading sentiments in the future. Recent institutional investments in Bitcoin and other cryptocurrencies have created a closer correlation between the cryptocurrency market and traditional stock markets.

Major institutions around the world grappling with service disruptions

Microsoft’s outage affected almost all organizations around the world, including the financial, education and other sectors. Banks, airlines, supermarkets and stock exchanges have all experienced major outages. Microsoft has acknowledged the issue and said it is working to determine the root cause of the specific problem.

The website DownDetector, which tracks user-reported internet outages, has seen increasing disruptions at Visa, ADT Security, Amazon and airlines including American Airlines and Delta. In Australia, airlines, telecom providers, banks and media outlets have been affected because they could not access their computer systems. Some banks in New Zealand have also been affected.

Microsoft 365 posted on X that the company was “working to redirect affected traffic to alternative systems to alleviate the impact more quickly” and noticed a “positive trend in service availability.”

According to the Federal Aviation Administration (FAA), all U.S. airlines—United, American, Delta, and Allegiant—have been grounded. In the United Kingdom, airlines, railways, and television stations have been hit by computer problems.

Ryanair, train operators TransPennine Express and Govia Thameslink Railway, and broadcaster Sky News were among those affected. Ryanair asked its passengers to arrive at the airport at least three hours before their scheduled departure time. The Microsoft outage highlighted the contrasting resilience of traditional financial systems and the cryptocurrency market.

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