Bitcoin has lost a third of its value in over a week after the cryptocurrency surged to a new record high and almost hit $20,000 on Sunday but decreased throughout the week.
The cryptocurrency plummeted more than 30 percent over five days since its all-time high on Sunday.
Despite its dramatic fall overnight, the cryptocurrency is still well up on the year and has seen a meteoric rise.
Bitcoin has faced differing prices throughout 2017, with the cryptocurrency set at £1,000 at the start of the year and reaching record highs in the past week.
Friday’s drop following an announcement from US exchange Coinbase that it was opening an investigation into a sudden price rise in bitcoin cash, which is a spin-off of bitcoin.
Laith Khalaf, senior analyst at Hargreaves Lansdown, said that there has been a pretty dramatic price movement downward in bitcoin.
Mr Khalaf said: “It’s a very volatile asset so it’s movement upward has been very sharp over the course of the year.
“But equally the falls that we have seen on a daily basis and weekly basis have been pretty sharp as well. Will it continue to fall? Who knows really.”
He said that he has “absolutely no idea” whether the currency will continue to crash or if it will go up again today or in coming weeks.
The sharp drop in value has sparked fear amid investors as the uncontrolled digital currency could continue to decline.
There are ongoing concerns about the high volatility of the cryptocurrency with critics warning that bitcoin could be a bubble about to burst.
JPMorgan chief executive Jamie Dimon said in October Bitcoin investors are “stupid” and will pay the price for it one day.