Triple whammy hits bitcoin price
07 February 2014 | 5741 views | 1
Bitcoin's price has plummeted by around 20% after exchange MT Gox temporarily suspended withdrawals, Apple kicked a popular wallet off of its App Store and Russia outlawed the crypto-currency.
Japan-based MT Gox, one of the world's biggest bitcoin exchanges, says in a statement on its site that an "increase in the flow of withdrawal requests has hindered our efforts on a technical level. To understand the issue thoroughly, the system needs to be in a static state."
A temporary pause on all withdrawals has been made, with those already in the system returned to users' Mt Gox wallets until the issue is fixed.
Bitcoin's price is down 21%, to around $720 on Mt Gox.
Although rumblings about withdrawals from MT Gox have been heard for some time, bitcoin-dedicated site CoinDesk also notes that trading volumes have soared over the last day.
In another setback to the currency, Apple has taken down the popular BlockChain app - which has been downloaded 120,000 times - from its store. BlockChain boss, Nicolas Cary, told the New York Times that the decision was a pre-emptive strike by Apple as it prepares to launch its own mobile payments service.
And in a third blow, Russia's Prosecutor General's office has issued a strong statement on virtual currencies, warning: "Russia's official currency is the ruble. The introduction of other types of currencies and the issue of money surrogates are banned."