A bitcoin price drop took place today and the cyrptocurrency is now sitting below $4,000.
The bitcoin price drop came after comments from JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon. He referred to the virtual currency as a “fruad.” Following his statements, the price of bitcoin dropped to $3,818.01 as of Wednesday morning.
“It’s worse than tulip bulbs. It won’t end well. Someone is going to get killed,” Jamie Dimon said in a statement obtained by CNBC. “Currencies have legal support. It will blow up.”
Jamie Dimon made his statements concerning bitcoin during an banking industry event being held by Barclays PLC (ADR) (NYSE:BCS). However, it isn’t just his voice that has investors worried about bitcoin price. There’s also been concern about China preparing to place regulations on the digital currency.
While there are concerns about the bitcoin price drop, it may not be as bad as investors think. Coindesk argues that the drop is simply part of a correction after a strong increase in the value of the cryptocurrency. Bitcoin hit a high of roughly $5,000 on Sept. 2, but has been unable to maintain that value.
Virtual currencies have been experiencing more scrutiny lately as they grow in value and see more use. The U.S. Securities and Exchange Commission is one of the entities that has taken notice. It recently put out a warning against Initial Coin Offerings scams. The organization says it may suspend trading of stock that is believed to have taken part in these scams.
As of this writing, William White did not hold a position in any of the aforementioned securities.