Bitcoin Price Surges Amid Rumored Testing of Withdrawals

mtgox price spike
The exchange rate surges at withdrawal testing news.

MtGox has allegedly begun testing withdrawals, seeing a 200% surge in exchange rates.

This post's updates have largely subsided, any additional breaks may be a separate article.

UPDATES:

Original Reddit thread about withdrawal signs here.

1:55am JST: 1400BTC buy order on BTC-e.

2:03am JST: MtGox exchange rate now up 215% in just under 2 hours.  $280

2:12am JST: Massive sell-offs on MtGox dropping the exchange rate back to $200, still up a little for the hour.  Rumors of market manipulation and also insider trading abound.

2:30am JST:  Surges and sells each getting smaller, volume appears to be diminishing, price settling near $230, a 50% increase for the hour.

uncertainty chart
2:20 JST, MtGox, This is what uncertainty, rumors, and manipulation look like in a market.

2:50am JST:  BTC China, which has also seen the price surging, announced a decrease in fees, the first since last December's Chinese regulation scare.

2:52am JST:  Core developer Greg Maxwell, "MtGox still authoring invalid transactions"

3:21am JST:  MtGox price falters as Greg Maxwell's statement gains attention, below $200 at the moment, but gaining again.

3:38am JST:  All exchange prices still trending down, no fresh announcements or news.  Personally, I am beginning to see the manipulation narrative as the most accurate.

4:11am JST:  All quiet with the exception of the Maxwell reddit thread, more updates will follow if something significant happens.  Thank you for following this happening with CryptoCoinsNews.com.

Background:

Despite the entire bitcoin ecosystem being effected by a denial-of-service attack exploiting a characteristic of the Bitcoin protocol,  MtGox received the brunt of consumer outrage after they suddenly halted bitcoin withdrawals and blamed a “bug in the bitcoin protocol.”  Critics cited out of date and amateur programming in the exchange’s system for its woes, as MtGox is the only exchange still experiencing disrupted service since the attacks.

In the last week the MtGox price has skirted the $100 range, due to skepticism about MtGox's solvency, and their continuing lack of information about when withdrawals will resume.

 

 

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Jonas Borchgrevink
Jonas Borchgrevink

Founder of CCN.com and Hacked.com. Passionate about how technology can empower people to create a more just and sustainable world.

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