Mt Gox claims an ‘increase in the flow of withdrawal requests has hindered our efforts on a technical level’.
Leading Bitcoin exchange Mt Gox has (once again) halted Bitcoin withdrawals, after an increase in withdrawal requests led to (they claim) technical problems. Mt Gox had previously halted withdrawals several times, but quickly worked to have them resumed.
Not unexpectedly, the withdrawal problems have exacerbated the effects of a falling Bitcoin price (see chart below). As of Thursday Bitcoins were trading in the $925 range. After the Friday Mt Gox announcement they dropped about 8% to the $850 level, with panicked selling sending Bitcoin prices spiraling further. As of the time of writing Bitcoins are trading hands at about $650 — marking a 30% decline since Thursday.
Five-day Bitcoin price and volume chart. Source: bitcoincharts.com.
In fact, it seems that this and previous withdrawal problems at Mt Gox have been bad for business, to the point where Mt Gox has now lost its #1 Bitcoin Exchange status (see chart below). According to bitcoincharts.com, Mt Gox has been overtaken by rival Bitstamp, as its Bitcoin market share has fallen over the past six months from above 50% to just 20%. Bitstamp sits at 30%.
Bitcoin Exchange market share. Source: bitcoincharts.com.
Mt Gox has promised to provide an update on the situation by Monday. Stay tuned to LeapRate, we’ll report more as it becomes available.