Bitcoin's Plunge Accelerates After China-Based Exchange Announces Shutdown
Bitcoin has lost more than $1,300 in value this month as authorities in China crackdown on cryptocurrency exchanges and Wall Street trashes the virtual currency craze.
Bitcoin prices continued to tumble Thursday after one of China's biggest exchanges said it would stop trading the cryptocurrency later this month amid an impending crackdown directed by the country's central bank.
Bitcoin prices on London's bitsmap exchange were marked 10.75% lower from Wednesday's close and changing hands at $3,450 each by 9 a.m. ET, the lowest since Aug 10. Bitcoin prices have fallen nearly 30%, or more than $1,400 from the all-time peak the virtual currency reached on Sept. 1.
BTCChina, one of the country's major bitcoin exchanges, said Thursday it will "stop all trades on the digital trading platform starting Sept. 30" and indicated it would no longer accept new users as of today.
The decision followed moves from authorities in China to ban so-called initial coin offerings, or ICOS, last week after more than 2.6 billion yuan ($400 million) in new cash was raised over the first six months of the year. Shortly after, reports indicated that China's central bank, the People's Bank of China, was looking to ban cryptocurrency trading across all platforms, although it would allow investors to continue to swap their digital currencies in over-the-counter transactions.
Bitcoin below the $4,000 mark for the first time in a month only yesterday, in fact, amid accusations of fraud from one of Wall Street's most influential leaders, JPMorgan Chase & Co. (JPM - Get Report) CEO Jamie Dimon, who called the virtual currency concept a "fraud" and said he'd fire any of his traders for dealing in it.
"The currency isn't going to work," Dimon told the Delivering Alpha investor conference in New York. "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," Dimon said. "It's just not a real thing," Dimon said. "Eventually, it will be: 'the emperor has no clothes'."