Bitcoin Tumbles Below $4000 - Down 21% From Record High

For the first time since August 22nd, the USD price of Bitcoin has dropped below $4000 - down over 20% from its record highs on September 1st.

 

Crackdowns by China (on ICOs and more recently confusion over Bitcoin exchanges) combined with JPMorgan's Jamie Dimon's comments today saw selling pressure extend as China opened...

All but one of the top 15 cryptocurrencies are under pressure...

 

As we noted earlier, what is ironic is that this is not the first time Jamie Dimon has lashed out at bitcoin: the last time Dimon slammed bitcoin was November 2015, at the Fortune Global Forum in San Francisco. Here’s what he had to say when asked directly about it by an audience member:

“You’re wasting your time with Bitcoin! Virtual currency, where it’s called a bitcoin vs. a U.S. dollar, that’s going to be stopped,” said Dimon. “No government will ever support a virtual currency that goes around borders and doesn’t have the same controls. It’s not going to happen.”

 

“Blockchain is like any other technology. If it is cheaper, effective, works, and secure, then we are going to use it. The technology will be used, and it could be used to transport currency, but it will be dollars, not bitcoins.”

Speaking to CNBC later in the day, Dimon said he’s skeptical governments will allow a currency to exist without state oversight: “Someone’s going to get killed and then the government’s going to come down,” he said. “You just saw in China, governments like to control their money supply.” And yet, despite said "killing" Bitcoin remained well above $4,000.

That said, Dimon conceded that he wouldn’t short bitcoin because there’s no telling how high it will go before it collapses, saying that it "could hit $100,000 before it drops." The best argument Dimon has heard about owning bitcoin, is that it can be useful to people in places with no other options: “If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than U.S. dollars,” he said. “So there may be a market for that, but it’d be a limited market.”

What is also ironic is Dimon's admission that his daughter purchased some bitcoin, saying "it went up and she thinks she is a genius."

And to think the Fed didn't even have to inject $4 trillion in liquidity to make her feel that way, unlike so many stock "investors."

Shortly after Dimon's comment, the chairman and CEO of the CBOE, Ed Tilly - which plans to offer bitcoin futures soon - defended the cryptocurrency after Dimon’s remarks.

“Like it or not, people want exposure to bitcoin,” Tilly said. Believers can bet on its rise, and Dimon is welcome to take the other side, he said. “We’re happy to be the ones in the middle.”

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Incidentally, for those who "wasted their time" since Dimon's 2015 threat, Bitcoin is up 1,018%.

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Perhaps most ironically, while US elites are talking their book in desparation at this 'new-fangled' virtual currency, Russia is working on legitimizing cryptocurrencies and is developing a legal framework that will govern transactions using digital currencies like Bitcoin.

Russia’s First Deputy Prime Minister Igor Shuvalov previously said that the regulation would be delayed that was originally set for October.

“In April, we announced that the draft law would be ready in October. However, the situation on the market made us, in addition to the main bill, consider several more options. And now all these projects are postponed, we are watching the situation to understand,” Sidorenko said.

Speaking at the II Moscow Financial Forum, Russian Finance Minister Anton Siluanov reassured Russian users of Bitcoin and other cryptocurrencies that the government has no intention of outlawing or penalizing cryptocurrencies and is working on regulation.

“The state understands indeed that crypto-currencies are real. There is no sense in banning them, there is a need to regulate them,” Siluanov said.

Putin himself has embraced cryptocurrency and met with Ethereum Founder Vitalik Buterin, who instilled the advantages of Russia’s usage of the Blockchain Technology under Bitcoin.

Comments

ET (not verified) Stackers Wed, 09/13/2017 - 01:04 Permalink

Cryptos can crash like GoPro or faster because of the absence of any circuit-breakers or plunge protection team.The 24/7 trading hours and high volatility will also flush out the weak hands in milliseconds. The strong hands will also soon learn that they are holding nothing.Cashing out will be extraordinarily difficult from the fraudulent exchanges.

In reply to by Stackers

chubbyjjfong ET (not verified) Wed, 09/13/2017 - 01:46 Permalink

So now we cheer for the PPT and circuit breaker brigade? Fuck sake. A free market is presented to us on a platter with new technology and all we can do is put the boot heel straight into it. I would have thought that the majority of ZH'ers would be all over something that is short the system and long decentralization. How wrong was I. 

In reply to by ET (not verified)

tion chubbyjjfong Wed, 09/13/2017 - 02:50 Permalink

He's right to point out the vulnerability created with these custodial exchanges though. Some vitriol on both sides but plenty of people here who see the value in bitcoin. I wonder what the age and city/rural divide looks like. As for me, I will be too far from dark alleys soon and went out to pick a little more up tonight.

In reply to by chubbyjjfong

3LockBox Wed, 09/13/2017 - 00:14 Permalink

Pumpers unite!Are you going to let Dimon do you like that?Click your heels 3 times and say it is all FUD and everything will get better. 

runningman18 Buckaroo Banzai Wed, 09/13/2017 - 00:39 Permalink

The funny thing is, JP Morgan is deeply invloved with Etherium, which is just a bitcoin clone, and all Dimon's banker buddies in Goldman Sachs and even Ben Bernanke are rallying behind Bitcoin and blockchain technology.  Dimon is just playing the heavy here to make people think the banksters don't love the idea of a completely cashless system with no privacy whatsoever.   Crypto will be the NWO currency system.

In reply to by Buckaroo Banzai

BallAndChained algol_dog Wed, 09/13/2017 - 08:01 Permalink

The Clown is Down.Down 20%, isn't that a bear market?The pumpers main selling point has been you must buy or you'll miss the boat of becoming a millionaire. It doesn't matter if you don't know what it is. You are too ignorant. Buy anyway and you'll get rich quick!!The poor pumpers will have to work overtime to prop up the Pyramid Scheme. 

In reply to by algol_dog

ET (not verified) Wed, 09/13/2017 - 00:12 Permalink

The reports of Gold's death have been greatly exaggerated.Physical Gold (and Silver) are real money. This time is not different.Bitcoin and other cryptos are fraudulent. Good luck cashing out.---https://www.sitejabber.com/reviews/www.coinbase.comRead the reviews. Nich M. 1 review 1 helpful vote“Terrible, no support and unable to withdraw by funds”     9/10/17The company allowed me to deposit 5k from my bank but after deposited, somehow couldn't "verify my identity" and held the money refusing to return it. No number to call no customer support and no help. Its been 61 days and still no help from coinbase. Ive reported them to the BBB, but I don't know if... read more Similar opinion? Write a review!Was this review helpful?Yes 1 AdvertisementRobert b. 1 review 0 helpful votes“STAY AWAY from coinbase.”     9/9/17Can't sell my crypto due to a glitch. Can't get a human to respond to my problem. Been a month and my money is just there. Not accessible to me.Similar opinion? Write a review!Was this review helpful?Yes DAPHNEE B. 1 review 0 helpful votes“SO SAD , LOST MY MONEY”     9/9/17WANT MY MONEY BACK!!!LOST CLOSE TO $1,000.00 WITH COINBASE.. !! DON'T EVER USE THEM. IF YOU KNOW HOW I CAN GET IT BACK PLEASE EMAIL ME AT DAPHNEEB77@AOL.COM DID TRANSACTION ON 08/21/2017 THANKS AND HELP MESimilar opinion? Write a review!Was this review helpful?Yes 

ET (not verified) ET (not verified) Wed, 09/13/2017 - 00:16 Permalink

Crypto scam.  CoinbaseCoinbase Contacts & InformationPosted: Sep 6, 2017 by    S Watson  funds not receivedComplaint Rating: EURO 1, 000 and EURO 12, 304 still has not been credited to my coinbase wallet and it has been 3 WEEKS with no response whatsoever from Coinbase despite numerous emails to their damn 'support'. Now unable to email directly to support@coinbase.com, error comes back that it is no longer 'enabled', one MUST go through their website and every time you do, YET ANOTHER case number is generated for the same damn complaint.Shocked to read how many people are in exactly the same position with no statements being released from Mr Coinbase CEO himself, Brian Armstrong, assuring customers their problems will be dealt with. CREDIT MY WALLET OR SEND MY MONEY BACK SO I CAN TAKE MY BUSINESS ELSEWHERE.

In reply to by ET (not verified)

0valueleft ET (not verified) Wed, 09/13/2017 - 01:14 Permalink

If silver is so liquid, why don't you take all your monster boxes of 2011 Walking Liberties and cash them out. Let's see it would only be a loss of what 55-60%, thanks to Jamie. Matter of fact my guess is a lot of you glib fucks have a few of those laying around. Tell the truth now! I have one. Of course I have an 89, 90, 91, 92 etc. you get the gist. Oh and I have some BTC and some ETH and will do some price averaging in LTC in the low 40's. Not going to back the "truck up" as everyone use to say on this site when silver hit $25.People who have timed all this shit, don't even know about the comments section of ZH. There busy enjoying themselves.

In reply to by ET (not verified)

ET (not verified) FreeShitter Wed, 09/13/2017 - 12:26 Permalink

You are such a liar, tmosley.

Why are you so obsessed with buck stops here?

I cashed out of LTC when it went parabolic almost two weeks ago. It was several hundred dollars only. The process took over a week for the funds to settle.

When I saw the hurdles to get the money out, I knew there was trouble.

I considered this market research.

In reply to by FreeShitter

ET (not verified) tmosley Wed, 09/13/2017 - 12:15 Permalink

I am technically a genius by testing standards.

My market timing isn't the best. This is why I dollar cost average into depressed assets at multi-year lows for the best performance, but I did luck out on major market moves. Accredited investor status is achievable but it requires patience, careful examination of biases and emotions and a strong stomach.

In reply to by tmosley

batushka ET (not verified) Wed, 09/13/2017 - 07:57 Permalink

I tried out Coinbase from a reference here on ZH.  I cautiously tried $100.  Bought LTC via debit card, successfully transfered it to Kracken.  No problem.  Then when I tried to purchase more Crypto on Coinbase.  I was shut down with all my trades being rejected.   Good thing I didn't transfer any real cash!  I doubt I'd have gotten it back. 

In reply to by ET (not verified)