LONDON (Reuters) – Bitcoin slid by more than 10 percent on Wednesday, as investors sold the cryptocurrency after a warning by JPMorgan (JPM.N) Chief Executive Jamie Dimon that it “is a fraud” and will eventually “blow up”.
Bitcoin, the original and still the biggest cryptocurrency, has been on a tear in recent months, hitting a record high just below $5,000 at the start of September after a more than fivefold increase in price since the start of the year.
But it early last week, when China banned the issuance of new digital coins for fundraising purposes – a phenomenon known as initial coin offerings, or ICOs.
ICOs have fueled a rapid ascent in the value of all cryptocurrencies, from about $17 billion at the start of the year – with bitcoin making up around 90 percent of that – to a record high close to $180 billion at the beginning of September, of which bitcoin represented less than half.
Following the ICO ban, the market was further spooked by reports early…