In 2016, the cryptocurrency market crashed over an eight day span in the beginning of January.
Bitcoin had touched a peak of nearly $20,000 in December - and indeed crossed over that threshold on some exchanges - but has since been roiled by several large selloffs.
Investors have also been putting money into newer virtual currencies like Ethereum and Ripple, which were created to do more sophisticated types of transactions than bitcoin. Traders looking to buy on the dip caused several cryptos to move higher over the last 24 hours.
The Ripple (XRP) price has gone nuts over the last 24 hours, rising by an incredible 46% over the last day to sit at $1.72 at the time of writing.
Ethereum (ETH) dropped from around US$1,125 to a recent low of US$785, then climbed back over US$1,000 quickly. Specifically, it was reported that major cryptocurrency hotspot South Korea was considering a bill that would ban cryptocurrency trading, and China expressed its intention to further crack down on centralized trading activities.
After experiencing a couple of turbulent trading sessions earlier this week, the Bitcoin price (BTC/USD) appears to have stabilised above the $11,500 mark.
Bitcoin has plummeted before.
Ahead of this week, bitcoin alternatives had soared in value.
As Bitcoin suddenly reversed its path to downward from a peak, a leading team of economists predicted that the digital currency has all the hallmarks of a classic speculative bubble, and that it is bursting.
Bitcoin tumbled 18% on Tuesday to a four-week trough close to $11,000, after reports that a ban on trading of cryptocurrencies in South Korea was still an option drove fears grew of a wider regulatory crackdown.
Separately, a senior Chinese central banker said authorities should ban centralized trading of virtual currencies as well as individuals and businesses that provide related services.
As news of the crash went viral, the scenario was that of panic. "People want to know that if they make a lot of money from bitcoin, they're going to be able to keep the money", Quaintance said. Even so, there are some digital coins that have taken everyone by surprise this year, so far.
South Korean officials' remarks have swayed the global markets for bitcoin and other crypto currencies in the past few weeks. While it has not been a good week for bitcoin, and cryptocurrency as a whole, it is safe to say we will definitely be seeing more news from it in the coming months. The value of one bitcoin fell to $9,958 (Sh1.02 million) on Wednesday before making a slight recovery, according to a price index run by the news site Coindesk. Bitcoin (BTC-USD) traded in a roughly $4,800 range throughout the week, and Ripple's (XRP-USD) weekly high was more than double its low.
The Securities Exchange Commission has asked investment fund trade groups to address "significant investor protection issues" linked to cryptocurrencies before exchange-traded-funds, that invest directly in bitcoin and its rivals or has significant exposure to them, can be launched.