BUSINESS

Bitcoin Is Crashing -- Again

02/07/2014 10:12 am ET | Updated Feb 10, 2014

Bitcoin prices plummeted late Thursday and early Friday morning after one of the crypto-currency's biggest exchanges halted withdrawals.

The price of Bitcoin fell from a high of $827 this week to $619 last night, shaving off 25 percent of its value before ticking back above $700 on Friday morning.

Mt. Gox, one of the largest and best known online markets for Bitcoins, said it was encountering technical problems when people tried to withdraw bitcoins. "In order for our team to resolve the withdrawal issue it is necessary for a temporarily [sic] pause on all withdrawal requests to obtain a clear technical view of the current processes," read a statement on the Japan-based exchange's website posted Friday.

Naturally, Bitcoin traders freaked out.

bitcoin

Bitcoin dove 25 percent overnight from Thursday to Friday, according to BitcoinWisdom.

Enthusiasts have been trying to find a footing for Bitcoin and avoid wild price fluctuations, which scare away regular investors. This week's plunge probably does little to assuage those fears.

The untraceable currency was dealt another blow this week when Apple decided to remove a popular Bitcoin wallet called Blockchain from its App Store for an unspecified "unresolved issue."

It's been a rough few months for Bitcoin. After hitting a record-high of $1,237.96 in December off of speculative trading in China, the price plunged off news that banks in the world's second largest economy couldn't use Bitcoin because it is "not a currency in the real meaning of the word," according to a notice from the Chinese government.

CORRECTION: The original version of this article stated that Bitcoin trading was halted on Mt. Gox. Only Bitcoin withdrawals had been halted.

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