Bitcoin made headlines around the world when it soared to almost $20,000 (£14,500) for a single coin in the run up to Christmas.
However, at the time of publishing the digital currency was trading down 14.7 per cent against the dollar at $6,986 a coin, according to data from Markets Insider.
That’s nearly a 64% decline from its all-time high set in December.
The total market capitalisation of the crypto market has now slumped by more than $70 billion over the last 24-hours.
The bloodbath appears to be connected to a string of announcements by several major banks that they will ban the use of their credit cards to buy Bitcoin and other digital currencies.
Virgin Money has joined Lloyds Banking Group in banning customers from buying Bitcoin and other digital currencies with their credit cards.
Virgin Money’s spokesperson said: “Following a review of our policies, I can confirm customers will no longer be able to use their Virgin Money credit card to purchase crypto-currencies.”
Like Lloyds, Virgin’s ban only applies to its credit cards, not debit cards.
Lloyds yesterday told its nine million credit card users it will block any future bids to buy the digital currency – which has lost more than half its value in just two months.
The price of Bitcoin has plummeted by more than 57 per cent from £14,000 in December to less than £6,000.
Lloyds bosses now fear they could end up footing the bill for unpaid debt should the price fall any further.
So credit card customers of Lloyds, which includes Halifax, Bank of Scotland and MBNA, are now blocked from buying the cryptocurrency online.
Banking experts predict other leading financial institutions will quickly follow suit,reports the Telegraph.
“Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies,” said a company spokeswoman.
Credit card customers of the bank will be blocked from buying Bitcoin online through a blacklist that will flag sellers.