It has fallen about 70 percent from its peak of almost $20,000 in December and was down nearly 50 percent so far this year.
The massive dips in the last few weeks managed to translate into a whopping $67 billion in market value; this shook the market and investors alike as the Bitcoin circulation is now tallied to be around the $125.8 billion.
"We view this selloff positively as we believe that lower prices will entice institutions to act quickly to adopt enhanced digital asset services before prices recover".
The cryptocurrency, which gripped the attention of the markets when it soared to nearly $20,000 a coin, was trading below $7,000 on Monday for the first time since November 15, according to data from CoinMarketCap.
Cryptocurrency, which gained popularity because of its non-reliance on governments and banks, has also been the target of hackers who have reportedly stolen millions of dollars worth of Bitcoin in recent months.
The cryptocurrency sector has also attracted the spotlight after news of hacks and scams, including the roughly 58 billion yen ($532.9m) stolen in digital money from Tokyo-based cryptocurrency exchange Coincheck two weeks ago.
While once looking like a surefire bet, the meteoric rise in Bitcoin's value from around $900 at the start of 2017 to over $20,000 in December followed by it's latest plunge which hit a low of under $6,800 underlines that now Bitcoin can only be a speculation, not a solid investment and certainly not a currency that ecommerce an rely on - there are few retailers who would happily lose 12% of their turnover by the end of a working day.
The move by Lloyds follows warnings by regulators and ministers in the US, South Korea, China, Russia, India, Germany and France over the market.
Still, many cryptocurrency backers said regulation should be welcomed and short-term price volatility is to be expected for a new market.
Clayton in testimony on Tuesday said Congress may need to change financial laws to better regulate cryptocurrencies.
Money has been running out of the door and when considering the PBoC's bombshell on Monday that it intends to ban all initial coin offerings and foreign and domestic cryptocurrency trading, its' perhaps a little surprising that more hasn't come off the table.
"This is an extremely volatile market", said Iqbal Gandham, managing director at trading platform eToro. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.