It has now recovered slightly to a price of $10 381,60, according to CoinMarketCap.com. At its current price, it is now down 48 percent from that all-time high of $19,343 last month.
Ethereum (ETH/USD) and Ripple continued to move lower. According to CoinMarketCap data, Ethereum is trading more than 20 percent lower at $888 a coin after sinking beneath $1,000 Tuesday. Ripple fell almost 23 percent to $1.06.
"The action we're seeing may seem dramatic but is really quite normal for this market," Mati Greenspan, senior market analyst at eToro, told CNBC.
"All in all, this drop has brought us back to the prices that were traded about a month ago for most coins."
Charles Hayter, chief executive of CryptoCompare, said that many expected the cryptocurrency market to decline.
"The market was very overheated and had significantly dislocated from trend. A large percentage of investors were expecting this correction and reversion to mean," he said.
The price fall comes at a time as reports in South Korea and China suggest the two countries are considering a ban on trading.