While it isn’t clear why bitcoin’s price has dropped so quickly, it isn’t hugely surprising.

Bitcoin is widely considered to be a bubble, which could keep inflating until it completely collapses.

The sudden slump does, however, come amid a great deal of negative press.

This week, the US Securities and Exchange Commission reportedly suspended trading in The Crypto Company, a US based cryptocurrency consultancy, amid concerns over stock manipulation.

South Korean bitcoin exchange Youbit also announced its closure, after hackers stole 17 per cent of all assets.

The value of the notoriously volatile cryptocurrency has fluctuated unpredictably all year, with nobody truly knowing whether it is on the verge of rising even further or falling spectacularly.

Just 1,000 bitcoin holders are believed to own 40 per cent of the entire market, and it has been claimed that they can cause its value to plummet or soar at any point.

All throughout bitcoin’s spectacular recent rise, fears around it being a huge bubble that could burst at any moment have only grown.

It has been labelled a “huge scam”, a “dangerous speculative bubble” and compared to an infamous historical crash involving tulip bulbs.

JPMorgan chief executive Jamie Dimon recently described bitcoin investors as “stupid” and said he would fire any staff caught trading in it.

However, its rapid rise has, understandably, also made it irresistible to many.

Some have even speculated that it could creep towards the $1m mark. However, the overwhelming consensus is that its price will eventually crash.