MtGox Update Disappoints, Bitcoin Retreats

MtGox has just posted its Feb. 20 update promised for today:

Dear MtGox Customers, Thank you for your patience this week while we are working on re-initiating Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term withdrawals. In addition to the technical issue, this week we have experienced some security problems, and as a result we had to relocate MtGox to our previous office building in Shibuya (details can be found here https://support.mtgox.com/home). The move, combined with some other security and technical challenges, pushed back our progress." As much as we didn't want to only provide an “update on an update”, this is the current status. We are committed to solving this issue and will provide more information as soon as possible to keep everyone in the loop." We are very sorry for the delays and deeply appreciate your kind understanding and continuous support. Best regards, MtGox Team

The update has disappointed traders, who have sent MtGox prices back , with BTC now trading at $150 after recovering above $200 earlier.

The drop effectively represents the realization traders' fears who braced themselves for bad news when slashing prices earlier today. By not having broken through its previous floor (at least not yet), the price action shows that while this is clearly another setback and frustration point for clients, it could have been worse.

MtGox could have announced fresh problems or backward progress. Then again, they sort of did. Additionally, many will read between the lines and tell you that this is merely a delay tactic and a mask for highly critical issues. Such a view will be reflected if the price indeed crumbles toward $100 and beyond.

After showing stamina earlier, Bitstamp and BTC-e have caved in as well, with both exchanges revisiting earlier lows and Bitstamp establishing a fresh low of $590.