Bitcoin Buzz | Mt Gox temporarily halts Bitcoin withdrawal
More bad news for digital currency customers as Japan-based trading platform temporarily suspends bitcoin
Bitcoin prices plunged on Friday after a major exchange announced a temporary halt to bitcoin withdrawals, sparking fears for the health to a significant player in digital currencies.
Japan-based Mt Gox said it had suspended withdrawals, citing “technical issues” resulting in bitcoins losing a fifth of its value on its major US dollar denominated exchange.
Increased withdrawal traffic “hindered” the company’s ability to operate, and decided to stop to assess the technical problems at large.
The company said it will provide an update on February 10.
All major Bitcoin trading platforms were firmly in the red on Friday night with the price of a coin losing up to US$100 in value.
Before problems surfaced, a coin fetched US$827 on the market, but fell as low as US$651 as news emerged of withdrawal difficulties.
Analyst Zennon Kapron noted that delays have artificially inflated the price on the Mt Gox exchange. More risk is attached to the price as customers are uncertain to when they can get hold of their money.