The blows keep on coming for bitcoin. The crypto currency dropped to a three-week low after Jamie Dimon and other big names in the financial industry issued wary remarks about bitcoin’s surge this year.

Bitcoin was down 5.6 per cent on the buck to $3,953 in recent trading, marking the first time it has been below the $4,000 mark since August 22, Reuters data show. It traded as high as $4,979.90 in early September.

Despite the violent sell-off, bitcoin has posted enormous price gains in 2017, having closed out 2016 at $959.54.

Mr Dimon, the head of JPMorgan Chase, America’s biggest bank by assets, on Tuesday called bitcoin a “fraud” that is mostly useful “if you were in Venezuela or Ecuador or North Korea.. or if you were a drug dealer, a murderer.” He went on to say that bitcoin is “worse than tulip bulbs”, an allusion to the 17th Century tulip mania that is among the world’s most infamous bubbles.

DoubleLine founder Jeffrey Gundlach echoed his Wall Street compatriot’s remarks, saying: “Maybe I’m too old, but I’m going to let this mania go on without me.”

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