Bitcoin Value Plummets as Mt. Gox Exchange Suspends Withdrawals
In a panic sell in response to Japan based Bitcoin exchange Mt.Gox suspending Bitcoin withdrawals due to technical issues, Bitcoin values plummeted over 20% overnight from around $950/BTC to a low of $735/BTC. In late January, Bitcoins were trading at a high of nearly $1,000/BTC.
Mt. Gox released this statement earlier today regarding Bitcoin withdrawal delays:
Dear MtGox Customers,
In our efforts to resolve the issue being encountered by various bitcoin withdrawals, it was determined that the increase in the flow of withdrawal requests has hindered our efforts on a technical level. To understand the issue thoroughly, the system needs to be in a static state.
In order for our team to resolve the withdrawal issue it is necessary for a temporarily pause on all withdrawal requests to obtain a clear technical view of the current processes.
We apologize for the sudden short notice. All bitcoin withdrawal requests will be on pause, and the withdrawals in the system will be returned to your MtGox wallet and can be reinitiated once the issue is resolved. The trading platform will perform as usual for the needs of our customers.
Our team will resolve this problem as soon as possible and will provide an update on Monday, February 10, 2014 (JST).
We deeply apologize for the inconvenience caused, and thank you for your kind support and considerations.
The MtGox Team
The Mt.Gox team is working quickly to remedy this issue as soon as possible and has promised an update as early as Monday, February 10, 2014 JST.
Mt.Gox is currently the third largest Bitcoin exchange in the world by trading volume and the recent plummeting value of Bitcoin represents the major flaw in completely decentralized and unregulated digital cryptocurrencies.
Recent withdrawal delays on Mt.Gox’s exchange have caused many Bitcoin investors to speculate Mt.Gox’s solvency causing mass panic selling in the market sharply dropping the value of Bitcoin as a whole. Such substantial drops in value happened as recently as December of last year when it was believed that China banned Bitcoin as a form of currency.