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Bitcoin News Update: AWS Disruption Underscores Centralization Risks; Decentralization Efforts in Crypto Accelerate

Bitcoin News Update: AWS Disruption Underscores Centralization Risks; Decentralization Efforts in Crypto Accelerate

Bitget-RWA2025/10/24 23:04
By:Bitget-RWA

- A 2025 AWS outage disrupted global services, exposing centralized cloud infrastructure risks as 4M users faced outages across finance, government, and aviation sectors. - Experts warned of systemic vulnerabilities in over-reliance on major cloud providers, while UK regulators questioned AWS's lack of critical infrastructure designation. - Zelle's stablecoin expansion aims to challenge traditional cross-border payments, with $1T+ annual transactions already processed through its network. - Bitcoin markets

An international disruption of

Web Services (AWS) on October 20-21, 2025, revealed the vulnerability of today’s digital backbone, causing interruptions for enterprises, government agencies, and financial systems worldwide. The initial failure occurred in AWS’s US-EAST-1 data center in Northern Virginia—a vital node for many leading global platforms—and rapidly impacted regions in Europe, Asia, and Australia. More than 4 million users encountered problems, affecting UK government portals such as HMRC and prominent banks, while U.S. airlines Delta and United also experienced technical outages, according to . This event highlighted the inherent dangers of relying on centralized cloud services, with specialists cautioning that depending on a few major providers introduces a “single point of failure” for the global economy, as observed.

As the leading cloud service, ahead of Microsoft Azure and Google Cloud from Alphabet, AWS confirmed the disruption stemmed from an issue in its US-EAST-1 region, which has a record of past outages. Although AWS stated that the situation was “completely resolved,” ongoing delays persisted as organizations worked through accumulated tasks, according to various sources. Jake Moore, cybersecurity specialist at ESET, pointed out the delicate nature of digital networks, remarking, “This incident exposes just how much we depend on infrastructure that can be quite fragile.” The outage also renewed calls for regulatory oversight, with the UK Treasury committee raising concerns over why Amazon had not been classified as a “critical third party” under financial regulations, as reported by

.

While the AWS incident dominated the news, there were also notable shifts in the cryptocurrency and payments industries. U.S. payment platform Zelle revealed intentions to utilize stablecoin technology for international payments, aiming to extend its domestic leadership to the global stage. Supported by Zelle’s consortium of banks, the project seeks to tackle the high fees and delays associated with conventional cross-border transfers. With Zelle already processing $1 trillion in yearly transactions, this move positions stablecoins as a foundational element for worldwide finance, according to a

. Meanwhile, Andreessen Horowitz highlighted the growing influence of stablecoins, noting $46 trillion in blockchain-based transactions over the past year—far surpassing traditional payment leaders like Visa.

In the Bitcoin market, conditions suggested a possible short squeeze as bearish traders faced increasing risk. Blockchain metrics and funding rates pointed to a surge in short positions, with analysts estimating $14 billion in leveraged trades at risk of liquidation should prices recover. Bitcoin’s value dipped below $108,000 amid negative sentiment, but some analysts suggested a reversal could be near. “Negative funding rates and a drop in short interest create an imbalance that could intensify rapid price swings,” blockchain analytics firm CryptoQuant commented in

. Institutional investors also showed restraint, with Michael Saylor’s MicroStrategy hinting at another substantial acquisition, bolstering bullish sentiment, .

The overlap between cloud infrastructure weaknesses and shifts in financial markets highlighted the deep connections within digital economies. While AWS’s outage exposed the pitfalls of centralized platforms, the evolution of crypto and stablecoins offered alternative paths for robustness and growth. At present, both investors and regulators are divided between prudence and optimism, with Bitcoin’s trajectory dependent on macroeconomic trends, institutional moves, and the continued rise of decentralized technologies.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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