Bitcoin is off around 70 percent from its all time-high hit in mid-November.
Over half a trillion dollars of value has been wiped off the entire cryptocurrency market in just under a month, as the prices of popular digital coins plunge.
On January 7, the market capitalization or value of the entire cryptocurrency market hit an all-time high of $835.69 billion, according to Coinmarketcap.com, a website that takes into account the prices of over 1,000 digital coins across different exchanges. In early trade on Tuesday, the value of the cryptocurrency market had plunged to $278.53 billion, marking a more than $557.1 billion drop since the record high.
It comes as virtual coins across the board take a hammering. Bitcoin briefly dipped below $6,000 for the first time since mid-November on Monday, according to data from CoinDesk. Bitcoin is still significantly higher on the year but down sharply since it recorded an all-time high of $19,783.21 in December.
Bitcoin's market cap has fallen $233.5 billion since that record high.
Ethereum meanwhile, which hit an all-time high of $1,432.88 on January 13, traded around $577 on Tuesday, marking a near 60 percent decline in a few weeks, according to Coinmarketcap.com data.
Third-largest cryptocurrency ripple is off more than 80 percent from its record high of $3.81 it hit earlier this month.
Both ripple and ethereum are higher than a year ago.
The sell-off appears to be prompted by a number of factors . On Monday, Financial News, a publication closely affiliated with the People's Bank of China, reported that the central bank will block all platforms related to cryptocurrency trading and the issuance of so-called initial coin offerings (ICOs).
And India's Finance Minister Arun Jaitley said last week that the country wants to "eliminate" the use of digital currencies , though India is a minor player in cryptocurrencies and the government apparently has yet to act.
Other worries are plaguing the digital currency market, particularly around a cryptocurrency called tether. Some experts have suggested that tether, which is pegged to the U.S. dollar, could be being created to prop up the bitcoin price.