The value of Bitcoin has plummeted to less than half of its record high valuation of $1,132 (£692) per coin earlier this month, just a few days after Cameron Winklevoss claimed the virtual currency could be worth over $40,000 (£25,000).
Bitcoin sank in value to around £258 earlier today, following reports in China that the world's biggest Bitcoin exchange, BTC China, would be restricting trade and blocking yuan-based deposits.
The recent surge in Bitcoin's value has been attributed by some analysts to the interest China has taken in the virtual currency. Speculation that China could be pulling out of the Bitcoin ecosystem altogether has caused some people to panic sell.
It is the biggest single drop in value in Bitcoin's history, and comes just days after one of the virtual currency's most famous enthusiasts, Cameron Winklevoss, predicted that the currency could surpass the value of $40,000 per coin, as set by the currency's market cap.
Winklevoss took to social news site Reddit on Sunday to do an AMA (Ask Me Anything) titled I am Cameron Winklevoss and I love me some Bitcoin AMA!
When asked by the user ntrivers whether Bitcoin will be a viable currency in the future, Winklevoss replied: "Bitcoin is a $400 billion dollar market cap, so $40,000 a coin, but I believe it could be much larger. When this will happen, if it happens, it will probably happen much faster than anyone imagines."
Another user asked how it felt to invest so much in something that was so volatile.
"Some days I don't even look at the price," Winklevoss said. "I'm in this for the long-haul. Spartans hold."