The downward action followed a weekend flash crash, which took the value down from a record-high of $63,200 as tracked by Coindesk.
According to cryptocurrency analytics firm Bybt, bitcoin set a new record in liquidations on Sunday, resulting in roughly one million positions worth a total of about $10 billion being wiped out.
Following the selling earlier this week Bitcoin Foundation Chairman Brock Pierce told FOX Business in a statement:
"This is just normal volatility in the Bitcoin market, and the pullback only brings us back to where we were two weeks ago," Pierce said. "I still think that all of the conditions are favorable to increase in the medium-and-long term, and I am - as should others - be actively looking to invest more across the space."
FOX Business' Lucas Manfredi contributed to this report.