GETTY Bitcoin's price has boucned back after the latest losses

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The digital currency is now sitting at around $3,500 - after racking up heavy losses since the start of the month, when the price had come close to breaking $5,000. The Chinese government is launching a crackdown on exchanges, which is fuelling the cryptocurrency sell-off. BTCC has now announced it will end trading at the end of the month, and it's feared more exchange closures could come. The world's second largest economy previously decided to ban initial coin offerings, which are used to raise funds with new digital tokens. The moves signal a marked hostility towards bitcoin and cryptocurrency in China. And to make matters worse, JP Morgan boss labelled bitcoin a "fraud" that will collapse and also said he would fire staff found to be trading the digital currency becuase they are "stupid" and "dangerous". The comments put further pressure on bitcoin's price. The JP Morgan chief told an investment audience: “I'd fire them in a second. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous”. Mr Dimon said bitcoin's epic popularity is worse than tulip bulbs, referring to speculators in Holland in the 17th century, who drove up prices of almost worthless bulbs.

The worst stock market crashes in history Wed, May 17, 2017 We have been witnesses to some of the worst stock market crashes ever known Play slideshow Getty Images 1 of 9 A stock market crash is a sudden dramatic decline of stock prices

Naeem Aslam, chief market analyst at Think Markets UK, said: "China's plan to shut down the domestic bitcoin exchanges has taken a lot of wind out of Bitcoin.



"The PBOC has prepared a draft which would ban the Chinese platforms from offering bitcoin trading- a serious blow for Bitcoin.



"Remember the Asia region has massively influenced the demand for bitcoin.



"The fading geopolitical tensions are also impacting the bitcoin price." Other countries have also moved to regulate the market in recent weeks. Australia recently introduced new measures targeting criminal use of the cryptocurrency and strengthened the Anti-Money Laundering And Counter Terrorism Financing Act. And the latest move by China is now another tightening of the market.

However, the adoption of bitcoin by a number of celebrities has helped the cryptocurrency into the mainstream. Underwear entrepreneur Michelle Mone last week announced the launch of £250million luxury property development in Dubai, priced in bitcoin - claiming the currency is the future. Experts said Mr Dimon could now be very wrong. Yoni Assia, co-founder and chief executive of eToro said: "Most large financial institutions are well on the road to accepting the enormous potential of blockchain technology, and many have invested significant sums in research, product development, and directly in cryptocurrencies. "Blockchain technology and cryptocurrencies have the potential to sweep away all of today's incumbent financial institutions. "In the next 20 years we can expect all financial assets to move over to the blockchain." "Big institutions such as JP Morgan will need a plan if they are to avoid being a casualty of the financial revolution. “Jamie Dimon’s comments were specifically about Bitcoin. Blockchain might be the big disruptive idea, but Bitcoin itself is a disruptive threat to the big banks. "Bitcoin has a different utility from government and bank issued fiat currency."Its popularity amongst investors over the last year is directly linked to increasing understanding of this real-world utility."