Just in time for July 4th when US banks are all closed anyways (except for this one), MtGox has announced that it is resuming US dollar withdrawals. The largest bitcoin exchange by volume announced two weeks ago that it was temporarily suspending USD withdrawals as it was working to upgrade its banking arrangements to handle customer demand. At the time, MtGox stated it would halt withdrawals for two weeks as they said “increased volume has made it difficult for our bank to process the transactions smoothly and within a timely manner, which has created unnecessary delays for our global customers.” Holding to their word, MtGox met its two week timeline with today’s news.
In making its announcement today, the bitcoin exchange added that they have formed news banking relationships with “several new banking partners both in Japan and around the world, and we are still in the process of finalizing even more.” However, they added that the new system is only going online now, therefore a backlog of transactions currently exists and they expect several more weeks of delays for fund processing. Not mentioned in the update from MtGox was any update about their new trading system that they have teased to be faster and able to hander an increased amount of transactions.
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During the fund processing hiatus, MtGox experienced a sizable drop in market share as its volumes dropped to below 50% of overall daily trading from above 60% two weeks ago, with BTC-E being the biggest benefiter. Despite little reaction when MtGox halted USD processing, prices have been moving steadily lower over the ensuing days with. Currently, prices of BTC/USD have dropped below $80 on major exchanges, hitting a low of $72.50 on MtGox today, which was last seen in mid-April’s selloff. Today’s low also marked a $40 drop in bitcoin prices since MtGox’s initial announcement two weeks ago.