Bitcoin has traded below $10,000 for the first time since early December.
The value of one bitcoin fell to $9,200 before making a recovery, according to Coindesk price index.
That represents a drop of more than 53% since it peaked close to $19,800 five weeks ago.
Other crypto-currencies have also experienced steep falls, including Ethereum, Ripple and Bitcoin Cash.
There has been concern among some experts that a bubble had been forming in the market as casual investors piled into an asset they did not fully understand.