Mt. Gox Bitcoins Get Obliterated

Is the price of Bitcoin on MtGox going to zero?

Prices have now fallen 116% in the last 12 hours to $120 on the once-dominant Bitcoin exchange. That is a spread of nearly $450 with prices on other sites. It would of course be a spectacular arbitrage to take advantage of, but no one can take their Bitcoins out of MtGox. There have been no updates about when they will resume. They did announce they'd moved offices, and it appears a new verification requirement may have been released.

There remains an outside chance that MtGox comes up with a technical fix to the issues affecting users' wallets and that withdrawals do resume - in which case anyone who purchased at this price will make a killing.

For now, here's the chart via ClarkMoody.com: