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Bitcoin crash: 'Unusual activity' halts withdrawals, transaction safety examined

A bitcoin crash occurred this week after the price of bitcoin first started to fall on Friday. New reports on the digital currency reveal that the marketplace was temporarily halting a majority of its withdrawals after announcements of “unusual activity” caused worry about overall transaction safety measures. The CS Monitor confirms this Monday, Feb. 10, 2014, that the digital currency’s price is in fact at its lowest level in almost two months this week due to the significant issue.

Bitcoin image, symbol of digital currency
Courtesy of Wikimedia Commons

The bitcoin crash is fortunately not expected to be permanent, though it has left one of the most massive drops in bitcoin prices in recent memory. Digital marketplace Mt. Gox announced that the halt on regular withdrawals stated this Friday would continue for an indeterminate amount of time after the “unusual activity” security concerns were detected. An official examination is underway to resolve just exactly what happened.

According to the press release, the fluctuating bitcoin price differed dramatically from one exchange to another exchange. The most widely known operator of the bitcoin marketplace, Mt. Gox (located in Tokyo, Japan), in fact recorded one of the most massive drops that occurred in the day.

“In fact, on the Mt. Gox platform, the currency plunged to money prices as low as $500 early on Monday, down more than over 27 percent from Friday's final price of $692. As cited on the official Mt. Gox website, it last traded at $595.74, which was off almost a full 14 percent from the start of the sinking prices at the onset of the weekend.”

The “unusual activity” security threat and bitcoin crash, which is being called a serious technical issue by one financial strategist, is apparently something that might leave a big impact on the digital marketplace.

"This technical issue is of a much larger intensity than we've seen in the past," said Sebastien Galy, currency strategist at Societe Generale in New York. "The market may be realizing that there are issues which are specific to these forms of currencies."

Bitcoin status has finally begun to garner wider usage and acceptance in the past months, starting in late 2013 and only strengthening this 2014. For example, the Kings basketball team and are just two sources that are now alleging that they would be willing to accept the modern form of “digital money” and peer-to-peer payment system. And like all forms of stocks and finances, security threats and crashes are unfortunate but certainly possible.

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