cryptocurrency was down over 9% Wednesday morning at $3,767 per


continues to slide Wednesday as uncertainty and criticism against
the red-hot cryptocurrency mount. 

The cryptocurrency was down over
 Wednesday morning at $3,767 a coin, just eleven days
after crossing the much-anticipated $5,000 threshold. 

Bitcoin has fallen more than 11% since
Jamie Dimon, the CEO of JPMorgan, bashed the

On Tuesday, the 61-year-old banker said at the Barclays Financial
Services Conference that bitcoin was “a fraud” that would
eventually blow up. Dimon, a long-time critic of bitcoin, once
called it “a terrible store of value” in
2014 during an interview with CNBC

John Spallanzani, chief macro strategist at CGFI Group, tells
Business Insider that Dimon’s remarks, however, aren’t
the only reason bitcoin is under pressure this morning. 

“The negative news cycle continues,

UK regulator FCA has sounded the alarm over
initial coin offerings, and the China crack down,” he said in an
email to Business Insider. 

On Tuesday, the UK’s financial watchdog, the Financial Conduct
Authority, warned
investors about the risk associated with initial coin
, the cryptocurrency-based fundraising method. Over
$2.1 billion have been raised via the method since the beginning
of the year, according to Autonomous NEXT, the financial
technology analytics provider. Some companies have raised
millions of dollars in a matter of hours without having
an actual product. Here’s the FCA (emphasis ours):

ICOs are very high-risk, speculative
You should be conscious of the risks
involved (highlighted below) and fully research the specific
project if you are thinking about buying digital tokens. You
should only invest in an ICO project if you are an experienced
investor, confident in the quality of the ICO project itself
(e.g. business plan, technology, people involved) and prepared
to lose your entire stake.”

Earlier this month, China
announced it was banning initial coin offerings
. And more
recently, rumors have escalated that China might ban
cryptocurrency trading altogether. A Caixin report out
September 8 suggested the
China will shut down domestic cryptocurrency

Two of China’s largest bitcoin exchanges, Okcoin and Huobi,
say they haven’t received any such notices, according to a

from Bloomberg’s Lulu Yilun Chen

In February,
China blocked customers from withdrawing their bitcoin
They were eventually allowed to

resume withdrawals
in June.   

Get the latest Bitcoin price here.

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