Awful week for Bitcoin fans. 

Bitcoin prices continued to tumble Thursday after one of China's biggest exchanges said it would stop trading the cryptocurrency later this month amid an impending crackdown directed by the country's central bank.

Bitcoin prices plunged as much as 11% on the session. The crypto's price has fallen nearly 30%, or more than $1,400 from the all-time peak the virtual currency reached on Sept. 1.

BTCChina, one of the country's major bitcoin exchanges, said Thursday it will "stop all trades on the digital trading platform starting Sept. 30" and indicated it would no longer accept new users as of today.

The decision followed moves from authorities in China to ban so-called initial coin offerings, or ICOS, last week after more than 2.6 billion yuan ($400 million) in new cash was raised over the first six months of the year. Shortly after, reports indicated that the People's Bank of China was looking to ban cryptocurrency trading across all platforms, although it would allow investors to continue to swap their digital currencies in over-the-counter transactions.

Bitcoin below the $4,000 mark for the first time in a month on Wednesday despite accusations of fraud from one of Wall Street's most influential leaders, JPMorgan Chase & Co. (JPM) CEO Jamie Dimon, who called the virtual currency concept a "fraud." Dimon added that he would fire any of his traders for dealing in it.

"The currency isn't going to work," Dimon told an audience at the Delivering Alpha investor conference in New York. "You can't have a business where people can invent a currency out of thin air and think that people who are buying it are really smart."

"My daughter bought a bitcoin and it immediately went up, now she thinks she's a genius," Dimon said. "It's just not a real thing," Dimon said. "Eventually, it will be: 'the emperor has no clothes'."

The decline may be just getting started.

Bitcoin overall is a gigantic bubble, according to Peter Schiff, CEO of Euro Pacific Capital.
 
"What kept me out of it is understanding that it's not going to work - that bitcoin or any of these cryptocurrencies are never going to be money," Schiff said in a recent interview with TheStreet. "They're never going to achieve what everybody believes is going to happen. All that's happening now is people are speculating on something that isn't going to happen."
 
Schiff pointed to the dot-com bust in the early 2000s as an example of speculation that ended up crashing. "I think the same thing is going to happen with all these cryptocurrencies - they're going to collapse," he said.
 
Schiff said there is massive inflation among cryptocurrencies, noting that bitcoin isn't the only one. "They keep on creating them one after another - so the supply is going to ultimately overwhelm the demand," he said.
 
Watch TheStreet's full Bitcoin interview with Schiff. 
 
 

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