MtGox Bitcoin Price Continues to Fall, Now Below $500

February 13, 2014 18:19 UTC
Bitcoins are selling for under $500 on MtGox for the first time since November.

Prices on the other exchanges seem to be holding steady for now, but MtGox simply cannot catch a break. People are already selling their MtGox bitcoins for “real bitcoins” at a discount, and Roger Ver has publicly stated that he’s one of the buyers on the other end of that trade. If you discount a small blip during December, this is actually the first time MtGox has dropped below $500 since the middle of November.

Why is the Price on MtGox Dropping?

People have been talking about the “end of MtGox” for almost a year now, but the exchange is still open for business at this point in time. Although withdrawals are frozen for now, the website is still working and users can send their bitcoins to other MtGox accounts. It seems that all faith in MtGox has been lost, but whether or not this fear is warranted is still up for debate. The Bitcoin market is one that has always been rather easily manipulated by FUD, and that’s what we may be facing again right here. Although there are troubles with transactions at MtGox, most of the evidence seems to show that they’re still solvent. On the other hand, BTC China CEO Bobby Lee seems to disagree.

Where Will We Be a Month from Now?

If Roger Ver is willing to buy hundreds of thousands of dollars worth of bitcoins, then perhaps everything doesn’t look so bad behind the scenes. There are currently issues with whether or not MtGox can actually process deposits and withdrawals, but that doesn’t mean there has been a “run on the bank”. Good things come to those who wait, and it seems that the people purchasing MtGox bitcoins at a discount right now may end up with a nice quick return on their investment later in the month. I can’t recommend using MtGox just because all of the issues they’ve had in the past, but that doesn’t mean they’re planning to run away with everyone’s money.

@kyletorpey

Kyle is a freelance Bitcoin writer and the Marketing Director for Bitcloud. His work has been featured on Business Insider, VICE Motherboard, Let's Talk Bitcoin, and RT's Keiser Report . You can follow him on Twitter (@kyletorpey) or send him an email.