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Cryptocurrencies - Bitcoin Slumps as Dimon Says Bitcoin Will 'blow up'

Bitcoin fell sharply on Tuesday

Investing.com – Bitcoin fell sharply on Tuesday after J.P. Morgan Chase & Co. boss Jamie Dimon warned that bitcoin “is a fraud” and “will eventually blow up”.

On the U.S.-based Bitfinex exchange, bitcoin fell to $4,108.1, down $93.7 or 2.23%, well below its recent peak of $4,969. At current prices Bitcoin boasts a market cap of $67.7 billion.

“Bitcoin will eventually blow up. It’s a fraud. It’s worse than tulip bulbs and won’t end well,” Dimon said at a banking industry conference organized by Barclays (LON:BARC).

Dimon’s warning comes amid a period of uncertainty in the cryptocurrency space after several reports suggested that Chinese regulators were planning to shut down local cryptocurrency exchanges.

“China’s central bank, working with other regulators, has drafted instructions banning Chinese platforms from providing virtual currency trading services”, the Wall Street Journal said Monday, citing people familiar with the matter.

China’s largest bitcoin exchanges, however, have been reluctant to elaborate on the matter as no official notice has been received from regulators.

The latest crackdown on cryptocurrency activity in China comes a week after the People’s Bank of China (PBoC) sent shockwaves through the cryptocurrency market, imposing a ban on individuals and businesses from raising funds through initial coin offerings (ICOs).

An initial coin offering ICO is a means fundraising via the use of cryptocurrency in which a company attracts investors by releasing its own digital currency which can appreciate in value if the business is successful.

The string of recent measures proposed by China to curb the use of cryptocurrencies has unsettled investors as strong demand from Far East has been a key factor supporting cryptocurrency growth.

Bitcoin Cash fell $23.69, or 4.27%, to $531.21, while Ethereum fell 3.13% to $287.91.

To stay on top of the latest moves in the crypto-space, be sure to check out: https://www.investing.com/crypto/

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