Bitcoin's price fell to a six-month low in the span of just three days after its second major crash -- creating a major sell-off from investors who want to protect their money.
The latest dip in value has taken bitcoin below $7,000 (£ 5,400) since last week, wiping nearly $20 billion out of its overall market capitalization.
The price remains well up from the beginning of the year when it sold at less than $4,000, but now it's worth half as much as it was in June.
The flash crash on Friday was attributed to current market the uncertainty that forced some investors to re-evaluate their holdings in cryptocurrency assets.
This confusion has been exacerbated by recent developments in China, where regulators are engaged in a fresh assault on the country's illegal trading in cryptocurrencies. A strong crypto trade alert from Chinese finance officials shook the bitcoin market, which some blamed for the current sell-off.
After the recent drop, which saw about $100 million liquidated into fiat currency overnight, digital currency analysts pointed to another mass sell-off.
"Worse could be on the virtual currency cards if it sees an expected 'Death Cross,'" Simon Peters, a bitcoin specialist at eToro online trading platform explained to The Independent,
The so-called Death Cross is a market trend which happens when the moving average of 50 days drops below the 200- day moving average. Bitcoin falling below this threshold is a sign that it may experience even more serious losses.
Peters noted that Bitcoin had fallen by more than 60 percent in value on both occasions when this happened previously and dragged another key electronic currency like Ethereum down with it.
Both Ethereum and Ripple have already suffered significant declines over the last few days, losing around 15 percent and 10 percent, respectively. Bitcoin Cash, a spin-off of its most famous namesake, has also slipped by about 14 percent.
Many experts claim that the downward movement of the sector might, in reality, signify an impending turnaround.
"In three months, we essentially went from $5,000 to $13,500 and now, like a pendulum swing, the market wants to know where the low price is," George McDonough, chief executive officer of blockchain investment firm KR1, told The Independent.
"We are in the early stages of a bull market in my view. Next time the bottom will be much stronger than $5,000 and we're going to find higher levels all the way back to all-time highs," McDonough added.
