Amazon Outage Rocks The Internet: Can Crypto Breakthrough as Web3 Stands Strong?

[Redator]

A single glitch in Amazon’s cloud sent shock waves across the internet and reignited questions about whether decentralized Web3 systems could hold up better.

Amazon Web Services (AWS) suffered a major outage on Monday, knocking offline a wide range of apps and websites around the world. 

The disruption hit platforms such as Reddit, Roblox, and Coinbase, as well as several UK government and banking services.

According to Amazon’s service update, the problem began in AWS’s US-East-1 region in Northern Virginia and was linked to a Domain Name System (DNS) issue affecting DynamoDB endpoints.

AWS said engineers fixed the core problem early Monday morning Pacific time but continued working to clear remaining errors.

What Caused the Amazon Web Services Outage in the US-East-1 Region?

According to Reuters report, the scale of the outage showed how dependent the internet has become on a few cloud giants. 

Social media, gaming, payments, and media platforms were all affected, with widespread reports of downtime through the day. 

Reddit, Roblox, Signal, Venmo, and others gradually came back online as AWS restored services.

On the crypto side, platforms that rely on cloud systems struggled. 

Coinbase said core functions were affected during the outage but later restored. The company also confirmed that some transfers were delayed but assured users their funds were safe.

In contrast, major blockchains kept working as usual. 

AWS aka (Amazon Web Services) run half the services of the world, even crypto like ETH, POL, ARB, BASE. you know who wasn't affected at all? Yes, Litecoin, +14 years zero down time. pic.twitter.com/Baz4nTZT0G

— WarrenŁee Ł (@WarrenBA86) October 20, 2025

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Amazon’s investigation traced the problem to DNS issues affecting DynamoDB API endpoints in the us-east-1 region. 

That glitch also blocked new EC2 instances from launching, slowing recovery for several customers. Because that region handles a large share of global cloud traffic, the failure had wide effects.

The event renewed debate about overreliance on big cloud providers. 

Regulators and infrastructure experts warned that outages at a few hyperscalers could disrupt entire economies.

In the UK, the incident added weight to calls for treating large cloud operators as “critical third parties” under stricter supervision.

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How Did Amazon and Bitcoin React After the AWS Outage?

Market Cap

24h 7d 30d 1y All Time

In late trading, Amazon and Coinbase ticked higher, while Bitcoin hovered near $110,700.

According to stock trader’s post on X, Amazon’s daily chart is finishing a pullback near the 0.382 Fibonacci level at $207.66. Price trades around $216, holding support at $211. 

(Source: X)

Resistance sits at $224.50, then $227 and $236. A bounce from this zone could start wave (v) in the Elliott Wave count, if price holds above the retracement band. 

Momentum is neutral but stabilizing, which points to buyers trying to regain control before earnings.

Crypto Tony, a notable crypto analyst, posted the Bitcoin price update on X.  Bitcoin price hit the $110,600 resistance after a rebound off $108,000.

On the 4-hour chart, a descending trendline still caps rallies and has been tested several times.

(Source: X)

Without a clear break above $111K–$112K, BTC likely chops between $100K and $110K. 

The pattern shows lower highs, with possible retests of $102K–$104K on rejection. 

A sustained move over $110,600 would put the broader uptrend back in focus unlike Amazon’s still-corrective setup after the outage headlines.

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