The price of Bitcoin has taken a hit post-Sept. 12 and is currently down to $3,500 levels, amid news of a regulatory crackdown in China as well as negative remarks about the cryptocurrency coming from J.P. Morgan CEO Jamie Dimon who called it "a fraud."

On September 14, bitcoin was trading around $3,500 levels, down by almost $1,300 down from its high a few days back. In terms of BTC volume by currency—JPY is currently dominating 39.04%, followed by USD and CNY at 36.63% and 12.13% (as per CryptoCompare.com data). Ethereum is back under $250 while bitcoin cash is now below $500; Ripple (XRP) is trading around $0.18 mark. Litecoin, which hit new highs less than a month ago, is now trading at $50 levels. The overall market capitalization is now at $121.67 billion (as per website CoinMarketCap).​​

Source: FinFix

Adding to the stream of negative news, BTCChina, one of China’s leading bitcoin exchanges, today announced that it plans to stop all trading by end of September. The news resulted in a further plunge of Bitcoin.

Bitcoin’s price has been reacting to news coming in from China since the beginning of the month. It began when the National Internet Finance Association of China issued a notice on August 30, 2017 on “guarding against risks of financing activities in the name of ICO.” This was followed by the People’s Bank of China's notice on Preventing Risks of Fundraising through Coin Offering on September 8, 2017. Then came the supposedly ‘fake’ news report by Caixin that read, “Chinese regulators ordered a halt to all virtual currency trading platforms in the country, acting to further rein in risks related to cryptocurrencies, Caixin learned from a source close to regulators.” (Related reading, see: China Halts All Cryptocurrency Exchanges to Curb ‘Risks’)

With the current events in China—BITKAN, an over-the-counter (OTC) trading service for has suspended its operations although its wallet service would remain unaffected. BITKAN, founded in 2013 owns the largest number of users within the industry in China. It offers OTC trading service, as well as price viewing, news reading, mining monitoring, price alert as well as E-Wallet services.

The series of announcements coming in from China has been making investors nervous and as if that wasn't enough, JP Morgan’s CEO spoke about his take on the primary cryptocurrency, Bitcoin. He said as reported by Bloomberg, “It's just not a real thing, eventually it will be closed," Dimon said at the Delivering Alpha conference presented by CNBC and Institutional Investor. The cryptocurrency “won’t end well,” he told an investor conference in New York on Tuesday, predicting it will eventually blow up. “It’s a fraud” and “worse than tulip bulbs.”

Even the Financial Conduct Authority (FCA) has issued a consumer warning about the risks of Initial Coin Offerings.

Amid the chaos, Jihan Wu, co-founder of BITMAIN has been tweeting on China’s alleged ban on Bitcoin. One of his tweet reads, “Bitcoin is not banned in China, but only Bitcoin exchange business is about to be banned (according to rumor).” While another one talks about exchanges without licenses.

The current scenario paints a typical scenario where investors aren’t looking beyond the ‘headlines’ and ‘reacting’ accordingly. A closer look at most announcements reflects the involvement of regulators and laying down of risks with an intent to protect customers.

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