As you know Bitcoin market is crashing continuously since today morning, and it already dropped from a high of $265 to a low of $156 in a period of six hours. Mt. Gox, The currency’s largest exchange, is suffering over an hour of lag time while Bitcointalk  and Bitcoincharts both are down completely, One redditor have suggested a DDoS (Denial of Service) attack is underway against Bitcoin properties and services.

“ This drop is being caused by the DDOS, simple as that. It’s no coincidence that MtGox, bitstmap, bitcointalk, bitcoinity and others are all suffering the same issues. Whoever is behind it saw the success they had last week and decided to go all out this time, hitting not just the exchanges but the forums, charts etc too.

The lag on MtGox is distorting the price beyond recognition, and the other markets are following. Panic is obviously going to set in where there’s a lack of information and a whole bunch of “bad” signs e.g. price dropping, sites down, scary posts everywhere. “

The attackers may have been attempting to trigger panic selling that they could then profit from by buying the currency at a low point timed to coincide with the temporary suspension of a series of attacks, like they did last week.

We’ll keep you posted, stay tuned with us.

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