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JPM CEO causes big slump in Bitcoin

Summary:

  • JP Morgan CEO Jamie Dimon warns he will fire any employee trading Bitcoin (BTCUSD on xStation5) for being "stupid"
  • Bitcoin collapses below $4000 on JPM CEO’s remarks
  • South Korean third largest Bitcoin exchange allows a physical cryptocurrency exchange

Everybody knows how meaningful for markets might be comments, opinions or some remarks voiced by prominent people. There is no doubt that Jamie Dimon, CEO of JPMorgan Chase, is among them. He did not beat around the bush talking about cryptocurrencies yesterday and suggested that he would fire any employee trading Bitcoin for being “stupid.” He also added that the cryptocurrency "won’t end well" forecasting that it will blow up ultimately. Nevertheless, those comments were not sufficiently powerful according to him as he called digital currencies "a fraud" and "worse than tulip bulbs" (a reference to the mania that swept Holland in the 17th century, with speculators driving up prices of virtually worthless tulip bulbs to exorbitant levels).

One could notice that JPM CEO’s Jamie Dimon isn’t a supporter of cryptocurrencies to say the least. In the face of those remarks, the Bitcoin price slumped immediately dragging down the whole virtual currency space. It’s worth underlining that gold prices saw just a modest drop which could question the safe haven role of Bitcoin.

link do file download linkWhile Bitcoin collapsed following Dimon’s remarks, gold prices remained little changed and even gained after a while. Source: xStation5

Moreover, Jamie Dimon admitted that he wouldn’t short Bitcoin because there’s no telling how high it will go before it collapses. He stressed as well that virtual coins are a perfect fashion to conceal payments, hence might be useful by drug dealers or murderers.

link do file download linkA daily time frame reveals a bout of sellers on Bitcoin. The price broke an important support at $4066 and might adjourn to $3850 or even lower. Source: xStation5

Looking elsewhere, South Korea’s third largest Bitcoin exchange Coinone has opened a physical cryptocurrency exchange. Six cryptocurrencies are supported, Bitcoin, Ethereum (ETHUSD) and Ripple (XRPUSD) are among them. It’s worth adding that the complex has a bitcoin ATM, a large display board with market information and features a face-to-face consultation service.

link do file download linkA display board with market information placed in the Coinone Bitcoin exchange. Source: bitcoin.com

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