Bitcoin prices plunged about 20% yesterday after MtGox said it would continue to suspend Bitcoin withdrawals as it sorted out a technical issue — and that it was blaming a problem in the Bitcoin protocol itself for the glitch.
The backlash from the Bitcoin community was swift: The issue highlighted by MtGox has been well known for years, they said, and that it was most likely they’re inability to adequately code around it that lay at fault.
Today, prices have almost completely recovered from what amounted to a flash crash, and are back around $US700. The big news this morning is that a hedge fund announced it had begun accepting Bitcoins for all deposit transactions, and that as of yesterday it had processed $US5.4 million worth, Coindesk’s Pete Rizzo reports.
Anyway, prices are still down 16% from before MtGox announced it had halted withdrawals last week.
Here’s the chart from Coindesk: