Update: Feb 17, 1:32p EST This morning, Mt. Gox announced a technical solution to the bitcoin withdrawal issue is being tested. A timeline for actual reinstatement of withdrawals remains to be seen, though an update was promised by Thursday. As discussed / expected in our original discussion below, XBT / USD has since climbed on the news and the impact has been more significant at Mt. Gox (up ~35%) than the rest of the market (up ~7%), like for two reasons: The general dissociation of Mt. Gox and the rest of the market as outlined below Anyone looking to capitalize on arbitrage opportunities when withdrawals are reinstated was just given more incentive to buy on Mt. Gox, tightening the cross-exchange spread Worth noting, since withdrawals were not actually reinstated, selling pressure from arbitrageurs hasn’t yet been realized. Instead, we saw an early bite at the expected market gains as an increased likelihood and shorter timeline to withdrawal reinstatement is priced in. Original The last week has been a tumultuous period for digital...