A Tokyo based exchange which handles bitcoin transactions; Mt. Gox has halted trading of the virtual currency as it wants the market to cool down. Incidentally, bitcoin prices have suddenly taken a plunge after rising quite significantly in the last few weeks. In the last 24 hours, the price of bitcoins dropped to $123.40, from its past value of $230. This marks a decline of 46% in price. While announcing the halt of trading bitcoins, Gox stated that an increase in trade volume is the major reason behind this decision. Incidentally, cyber-attacks have been a big reason to cause shutdowns in the past, however, in this particular incident, that’s not the reason.
Incidentally, bitcoin is a virtual currency which can be used for both buying and selling a big range of items, be it cupcakes, electronics or illegal narcotics. Numerous online exchanges across the globe offer a market for the bitcoins to be sold and bought against the greenback, Yen, Euro and other major currencies. In the last few days, bitcoin has experienced large swings in its value.
In its official statement, Gox stated that many dealing with bitcoins have started to panic and as a result, they are selling bitcoins in mass. This is kind of a panic sale and therefore, the trade volumes have increased by a huge margin. This resulted into freezing of the trade engine. The entire trading system of the exchange has taken a toll after the increased number of bitcoin trading operations. Until 12th April, trading has thereby halted.
However, there are other exchanges which are continuing the regular trading operations of bitcoin. For an example, the San Francisco based Tradehill Inc. is still open for the traders and they are processing timely orders as well. The news was confirmed by the founder and Chief Executive Officer of the same, Jered Kenna.
While announcing the decision of keeping its trading operations regular, Kenna stated that the company was built with anticipation that high amount of trades will be executed through the same. Hence, they are facing no problem with the currently experienced high trading volumes. Kenna acknowledged that over the last few days, the overall trading volume of bitcoins has kind of exploded. Kenna added that investors look for more professional experience and that’s exactly what they get with Tradehill. Kenna believes that’s what giving Tradehill the popularity.