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Bitcoin Value Faces Its Biggest Drop in Quite Some Time

Image Source: NY Post

Bitcoin prices have fall below $4,000 for the first time in a month following the dumping of the cryptocurrency by investors fraud accusations by an important Wall Street leader, as well as a crackdown on fundraising in China.

Bitcoins have reportedly been brought down to $3,970 each on the Bitsmap exchange in London, the lowest since August 13th of this year. They are also down approximately 5% from last night alone following several disparaging statements from JPMorgan Chase & Co. CEO Jamie Dimon. Dimon called the currency a concept of “fraud” and announced that he would fire any of his traders for using it. Over this month thus far, the prices of bitcoin have dropped almost 20%, or over $1,000, from September 1st, the date on which the virtual currency reached its peak value.

Addressing the Delivering Alpha investor conference in New York, Dimon said,

The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart. My daughter bought a bitcoin and it immediately went up, now she thinks she’s a genius. It’s just not a real thing. Eventually, it will be: ‘the emperor has no clothes’.

Bitcoin has recently experienced some of its most difficult weeks since its original inception, due in part to China banning the initial coin-offerings after over $2.6 million yuan (equivalent to about $400 million) in new cash had been raised over the first half of 2017.

Reports have indicated that China’s biggest bank, the People’s Bank of China, was looking to ban all forms of cryptocurrency. However, it would allow investors to continue swapping their remaining digital currencies in over-the-counter transactions.

[via TheStreet]

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