JPMorgan CEO Jamie Dimon says bitcoin is a fraud that will eventually blow up
JPMorgan Chase CEO Jamie Dimon took a shot at bitcoin, saying the cryptocurrency "is a fraud."
"It's worse than tulip bulbs. It won't end well. Someone is going to get killed," Dimon said at a banking industry conference organized by Barclays. "Currencies have legal support. It will blow up."
Bitcoin fell to trade around its session lows after Dimon's comments. As of 2:05 p.m. in New York, bitcoin traded at $4,154.04, down 0.8 percent.
Earlier on Tuesday, he warned about further declines in trading revenue for the banking giant.
Dimon said third-quarter trading revenue will drop about 20 percent on a year-over-year basis. Dimon also said the bank may not give intra-quarter guidance in the future.
JPMorgan's stock fell off its session highs on the comments, but remained up 1.4 percent on the day.
This comes just a day after Citigroup CEO John Gerspach issued a similar warning. On Monday, Gerspach said Citi's trading revenue could fall 15 percent, citing low market volatility.
2017 has been the calmest market in decades. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, hit its lowest level in more than 20 years earlier this year.
The second quarter was also a weak one for JPMorgan's trading unit as revenue fell 14 percent during the period on a year-over-year basis.
Dimon will also be speaking later Tuesday at the Delivering Alpha conference in New York.
—CNBC's Wilfred Frost contributed to this report.
What do you guy's think?
I see the price has dropped about $250 today.
Do you think its a bubble or is Bitcoin going to get as high as 6 or 7 figures like some people are speculating?
I think Dimon is a fraud. This is FUD spreading at it's best. Saw this great post on why the tulip bubble comparison is also a non-starter.
https://steemit.com/money/@thehutchreport/dimon-is-whistling-thin-air-out-of-his-two-lips-bitcoin-is-not-like-the-tulip-bubble