The digital currency market has suffered sharp declines over the last several weeks amid a widespread sell-off.
According to CoinMarketCap, it resulted in losing close to 40% of its market value.
The total market capitalization of digital assets reached as little as $112 billion on Thursday, which represented a 37.7% drop from its all-time high of $179.8 billion.
After dropping to approximately $146 billion September 8, cryptocurrencies fluctuated within a reasonably modest range for the next several sessions.
The price of Bitcoin (EXANTE: Bitcoin) lost more than $500 during one day alone hitting a fresh low of $3,350.17 from the day's open of $3,874.26.
When accounting for the day's price high of $3,923.98, that figure swells to approximately $573.
Chinese bitcoin exchange BTCChina said on Thursday that it would stop all trading from September 30, setting off a further slide in the value of the cryptocurrency that left it over 30 percent away from the record highs it hit earlier in the month.
The price of bitcoin has already dropped significantly on September 13 as uncertainty about the news from China swept the web. Bitcoin’s value dipped from $4,200 to a low of $3,500.
On Tuesday chief executive of JPMorgan Chase & Co (NYSE: JPM) Jamie Dimon said that Bitcoin was 'a fraud' and it would blow up. Speaking at a bank investor conference in New York, Dimon added: “The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.”
Earlier this month China’s central bank the People’s Bank of China proclaimed initial coin offerings (ICOs) illegal and demanded all related fundraising activity to be halted immediately.