The surge was followed by a 22 percent drop to $1,139. The SegWit2x upgrade would have raised the block size to two megabytes.
The new asset has become too big for many on Wall Street to ignore.
Bitcoin Cash (BCH) decreased by 33% according to CoinMarketCap after yesterday's considerable growth up to $2477 with market capitalization more than $41 billion. Its aim was to increase the transactions speed of the bitcoin network.
Bitcoin cash saw a huge spike as bitcoin sold off with many investors betting that this could be a viable alternative.
Meanwhile, others on Twitter are suggesting that much of Bitcoin Cash's weekend gains was fueled by speculators in Korea, who could incur large losses if the currency doesn't regain its momentum.
Proponents of bitcoin cash believe their approach is simpler and closer to the original goal of bitcoin, which was described primarily as a payment system in its white paper.
The digital currency started trading at $5,857.32 on Monday and rose to $6,545.20 by 6:50 a.m. ET, according to data from industry website CoinDesk. It's now trading at $6,242 after touching a record $7,882 on Wednesday.
We have seen similar steep falls in Bitcoin throughout the year, specifically in June and September, but each time a pullback happens new investors come in to buy the new asset class.
Volume across Bitcoin exchanges jumped to 436,021 "coins" Sunday, the highest since September, the data show. BitMEX, an exchange for cryptocurrency derivatives that allows shorting, saw record activity on Sunday, Chief Executive Officer Arthur Hayes said.
Investing and trading in Bitcoin is not for novices or the feint of heart.