Bitcoin Price Update LIVE: Bitcoin recovers amid China BTCC and exchange shut down

BITCOIN'S price has moved back above $3,000, as China closes down local cryptocurrency exchange BTCChina with fears of more to come, while JP Morgan boss Jamie Dimon savaged the digital money.

The digital currency is now sitting at around $3,500 - after racking up heavy losses since the start of the month, when the price had come close to breaking $5,000.

The Chinese government is launching a crackdown on exchanges, which is fuelling the cryptocurrency sell-off.

BTCC has now announced it will end trading at the end of the month, and it's feared more exchange closures could come.

The world's second largest economy previously decided to ban initial coin offerings, which are used to raise funds with new digital tokens.

The moves signal a marked hostility towards bitcoin and cryptocurrency in China.

And to make matters worse, JP Morgan boss labelled bitcoin a "fraud" that will collapse and also said he would fire staff found to be trading the digital currency becuase they are "stupid" and "dangerous".

The comments put further pressure on bitcoin's price.

The JP Morgan chief told an investment audience: “I'd fire them in a second. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous”.

Mr Dimon said bitcoin's epic popularity is worse than tulip bulbs, referring to speculators in Holland in the 17th century, who drove up prices of almost worthless bulbs.