[Update] Bitcoin Rollercoaster Ride Sees Cryptocurrency Fall Below $3,000 Before Recovering

Bitcoin is living up to its billing as a volatile currency. It was a big deal last month when Bitcoin first flirted with a $2,900 valuation. Just a couple of weeks later, it jumped past the $4,000 mark, setting yet another new high in the process. More recently, Bitcoin has hit a rough patch, causing its value to fall as low as $2,915.15, its lowest level since it surge in early August.

Bitcoin

Cryptocurrency investors seemingly panicked in the wake of negative news this week. It started with JPMorgan Chase CEO Jamie Dimon calling cryptocurrencies like Bitcoin a fraud. Speaking at the Delivering Alpha conference, Dimon said Bitcoin is "just not a real thing" and warned that "eventually it will be closed." His loathing for Bitcoin runs so deep that he even mocked his own daughter for buying into the craze.

"My daughter bought Bitcoin, it went up and now she thinks she's a genius," Dimon said.

He also made it clear that any JPMorgan trader found to be investing in Bitcoin would immediately be fired because "they are stupid."

It was not just harsh words from the head of JPMorgan that spooked Bitcoin investors. Just a day after he made those remarks, BTC China, the second largest exchange in China, announced that it was no longer accepting new users registrations, with plans to shut down completely by the end of the month.

Bitcoin Value
Bitcoin value since the beginning of the year (Source: Coindesk)

The back-to-back negative news surrounding Bitcoin pushed its valuation downwards, though the good news for Bitcoin investors who held tight to their digital coins is that it was a temporary drop. After the initial wave of panic, Bitcoin is back on the rise. It is currently trading at $3,570. That is a positive sign for Bitcoin, though it is still down 18.5 percent for the week. Things look far better if comparing to the beginning of the year—Bitcoin is up 258 percent since January 1, 2017. Meanwhile, the S&P 500 is up about 10.5 percent in the same time frame.

Ethereum, another popular cryptocurrency that has surged in recent months, has been following a similar trend. It fell to below $200 today for the first time since July. However, it is now trading at around $249, which is about where it was valued yesterday. These are the types of wild swings that makes investing in cryptocurrencies so thrilling and frightening at the same time.

Updated @ 12:02PM EST
Bitcoin has since recovered and is trading at around $3,700.

Via:  CNBC
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