>> It's been a big week for Bitcoin. First, the cryptocurrency getting a slapdown by none other than JP Morgan Chase CEO Jamie Diamond who minced no words describing Bitcoin as quote a fraud. Going even further warning he'd fire any of his traders in a second if he found out they were trading it.
That was not taken lightly, says Reuter's Foreign Exchange Correspondent, Gertrude Chavez-Dreyfuss.>> Everybody respects him. Everybody looks to him. And when he makes a comment like that, everybody listens, especially investors who are starting to take Bitcoin seriously. You said if Jamie Diamond is calling BitCoin a fraud, there must be something to this.
>> And with that, BitCoin resumed a free fall temporarily breaking below $3,000 before recovering some of that on Friday. It's still having a rough time though losing one quarter of it's value, so it's a peak Early September. Jamie Diamond isn't the only factor. Yhere have been warnings from officials in South Korea, Malaysia, and the UK as of late, all coming on the heels of a crackdown by China.
>> This week, one of the Chinese exchanges shut down their Bitcoin trading. And because they were anticipating that China will close all cryptocurrency exchanges. And then today, China came out with a story saying that they've asked these digital currency exchanges to close their trading by the end of the month.
>> China is the worlds biggest market for bitcoins, responsible for more than 80% of all global trade. Bitcoin, however, is notoriously volatile. Huge drops are often followed by huge rallies. And that may be the case especially if it manages to regain some credibility as a new place to hid when the rest of the world gets scary.