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Mount Gox Raided, BTC Falls to $0.01

A raid of Mount Gox, at that point the leading online bitcoin exchange, prompts a temporary free fall: The dollar value plunges to $0.01 per bitcoin before a swift, partial recovery to $15 moments later. This flash crash begets the first major deflation spiral for bitcoin, as investors, spooked by ongoing security breaches, price volatility, and criminal activity, dial down exposure. Bitcoin’s rate of exchange recedes for almost two years.

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