The price of bitcoin fell below $6,000 per coin on Monday on a disastrous day for holders of the cryptocurrency.
Bitcoin, which neared an all-time high of $20,000 just two months ago, fell briefly to $5,947.40 yesterday (February 5), according to monitoring service CoinDesk.
The popular cryptocurrency, until recently seen as a fantastic opportunity for investors, was down 11.9% on the day and has now lost over 50% of its value in the year to date.
The overall value of the cryptocurrency market - which includes several other virtual monetary technologies besides Bitcoin -had fallen to $278.53 billion in early tade. This constituted a fall of more than $557.1 billion drop since the heady days of December.
The latest CoinDesk data shows that Bitcoin fell below $6,000 per coin again this morning, but has rallied slightly to reach $6,609.22. Just a week ago, the price stood at nearly $11,000.
The cryptocurrency market has not been doing well this year, as there are concerns over more regulation being put in place and many banks not allowing the currency to be used.
Bitcoin's problems encapsulate the plight of the global stock market. The FTSE 100 Index sank by more than 2.5% yesterday - hitting its lowest level since late 2016 at 7,079.41 - before paring losses to fall 163.57 points to 7,167.08.
London's top-flight index has joined global markets by crashing into the red over fears that rising inflation could force central banks to hike interest rates.
Across Europe, Germany's Dax plummeted by 2.7% and the Cac 40 in France was languishing 2.1% lower.
Falls in Europe followed a brutal overnight sell-off in Asia and on Wall Street, where the Dow Jones Industrial Average and the S&P 500 dropped 4.6% and 4.1% respectively.
Tokyo's Nikkei 225 Day closed down 4.7%, while the Hong Kong's Hang Seng Index plunged 5% lower.
The global equity sell-off has been building since last Friday when traders became spooked by the prospect of tighter monetary policy after the US posted strong average earnings data.
The crash follows deep losses during Monday's session (February 6) when more than £27 billion was wiped off the value of London's blue-chip stocks.