Bitcoin plunges after software bug forces withdrawal halt

[NEW YORK] The price of the digital currency bitcoin has slid to its lowest level in nearly two months after bitcoin digital marketplace Mt Gox said a halt on withdrawals it announced on Friday would continue indefinitely following the detection of "unusual activity".

The bitcoin price varied dramatically from one exchange to another, with Tokyo-based Mt Gox, the best known operator of a bitcoin digital marketplace, recording one of the biggest drops for the day.

On the Mt Gox platform, the currency plunged to as low as US$500 early on Monday, down more than 27 per cent from Friday's final price of US$692, according to the Mt Gox website.