Bitcoin (BTC) prices have taken a beating over the past 72 hours as many traders fear for the crypotcurrency’s future while MtGox reveals technical issues related to withdrawals.
BTC is currently trading at around $690 on both Bitstamp and BTC-e- a drop of 14% from its previous plateau near $800 held for several weeks. This is BTC’s lowest price in 2014- even lower than during the upheaval spurred by developments in China earlier this year, and the lowest since the price crash in mid-December.
Several hours ago, BTC had fallen as low as $671 on BTC-e. On Bitstamp, it even reached $619 at the peak of its selling, which saw as much as 10,000 BTC ($6.2M) exchange hands per hour.
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Percentage-wise, the magnitude of loss on all exchanges is the highest in a month. In the process, BTC has shed $1.7B of market value.
On MtGox itself, the value of a Bitcoin is now officially lower than on the other exchanges, falling by as much as 35% to $622 in a matter of days. It’s currently trading at $670. Volume continues in excess of 6000 BTC per hour and actually peaked over 7800 BTC/hr ($4.8M) at the height of the selling, as a bitcoin officially became less worth to own on MtGox than on other exchanges.
The revelations of serious technical issues have cast doubt not only on their ability to transfer bitcoins, but also on their ability to maintain the system integrity essential to preserve the very bitcoins they are entrusted with. MTGox’s credibility to function as an exchange is also at stake, although most will be slightly relieved at the absence of revelations testifying to a solvency issue.
One can expect prices to remain at their dismal levels with continued volatility until if/when the MtGox issues are sorted out. Whatever happens with MtGox, expect prices to rebound strongly toward previous levels on other exchanges as soon as there’s closure on the MtGox front and panic subsides. BTC prices have rebounded in strong fashion after falls resulting from developments posing a greater threat to the cryptocurrency’s value and not confined to any one exchange in particular.