The price of bitcoin on Mt. Gox dropped below $100, hitting a low of $91.50 on 20th February.
Data from Bitcoincharts indicates it was the lowest total observed on the exchange since 22nd July when the lowest price was $89.80.
The announcement comes amid increasing criticism from the bitcoin community about the exchange and its questionable behavior that has included ignoring protestors, blaming the Bitcoin protocol for its implementation issues and somehow managing to create an aura of suspicion and uncertainty around even its physical address.
Earlier this week, Blockchain.info chief security officer Andreas Antonopoulos went so far as to label Mt. Gox “clownish” and “incompetent” as part of the latest episode of the popular podcast Let’s Talk Bitcoin, which was dedicated to dissecting problems at the exchange.
The developments are just the latest in a string of setbacks that have spawned community outrage at both the exchange and CEO Mark Karpeles in the last few weeks. Some community members have even called for Karpeles resignation from the Bitcoin Foundation in light of the recent developments, though the organization has not yet weighed in on the gathered petitions.
Prices stable elsewhere
At press time, the uncertainty around Mt. Gox and its solvency seemed to be affecting other exchanges, though only marginally.
Prices at both BTC-e and Bitstamp were roughly $400 greater than those at Mt. Gox. The figures are particularly stunning, given the exchange’s reputation for high prices compared to other exchanges.
BTC-e opened at $542 on 20th February and at press time had fallen to $539. Similarly, Bitstamp dropped from a high of $561 to $553 at press time.
Community reaction
News that Mt. Gox had fallen under the $100 mark was quick to arrive on reddit, with many community members debating the right investment strategy as well as the motives of Mt. Gox in the wake of the most recent setback.
Some maintained that the market would soon rebound sharply once the situation was resolved, while others suggested the resulting negativity surrounding the market would push fringe bitcoin users away, perhaps for good.
However, notably there seemed to be a growing opinion that Mt. Gox’s low bitcoin prices may actually be a better reflection of bitcoin’s value.
This minority cited that fact that prices were at or near current prices before China’s influence on the market and the swell of optimism that came with bitcoin’s rising prices toward the end of 2013.
Where will the market head from here? Weigh in with your thoughts below.