Mt Gox update, but no news

Beleaguered exchange Mt Gox has released a keenly-anticipated update on its status, but the news offers anxious bitcoin holders nothing to inspire confidence. In fact it says nothing new.

The long awaited press release seems to be an update on an update: ‘In addition to the technical [malleability] issue, this week we have experienced some security problems, and as a result we had to relocate MtGox to our previous office building in Shibuya… combined with some other security and technical challenges, [this has] pushed back our progress.’

Yesterday Mt Gox was eerily calm, with low volumes and trading restricted to a narrow range of just a few dollars. Similar behaviour was seen on other major exchanges, as traders waited to find out whether the world’s first and once largest bitcoin exchange had finally burned its last reserves of goodwill with its followers.

Nerves sent minor ripples through the markets on Thursday morning, with traders fearing Gox would prove insolvent. Gox itself dipped to $134/btc at one point. In the immediate aftermath of Mt Gox’s statement, prices crashed once again to near six-month lows before rebounding to the $150 mark.

Other major exchanges reacted with more muted frustration to the ‘no news’ statement, falling just a few dollars in the first minutes before stabilising. On Bitcoin.de, prices barely shuddered.

Gox has shown it is down, but not out – yet. If its prices accurately reflect its users’ fears, though, it’s just a matter of time.

Brandon Hurst

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