Other cryptocurrencies plunged as well after reports South Korea and China could ban cryptocurrency trading.
Bitcoin has traded below 8000 euros ($10,000) for the first time since early December.
The price of bitcoin, the world’s biggest and best known cryptocurrency, almost halved in value on the Luxembourg-based Bitstamp exchange, from its peak value five weeks ago, according to the price index run by the news site Coindesk.
The slump has left investors fearing that regulators could clamp down on the volatile cryptocurrency.
There has been concern among some experts that a bubble had been forming in the market as casual investors pile into an asset they don't fully understand.
Other crypto-currencies including Ethereum, Ripple, Litecoin and Bitcoin Cash also plunged after reports South Korea and China could ban its trading, sparking worries of a wider regulatory crackdown.
Analysts at Citi say bitcoin could halve again in value amid the current climate.
With South Korea, Japan and China all making noises about a regulatory swoop, and officials in France and the United States vowing to investigate cryptocurrencies, there are concerns that global coordination on how to regulate them will accelerate.
Officials are expected to debate the rise of bitcoin at the upcoming G20 summit in Argentina in March.