The price of bitcoin fell more than 10 per cent on Wednesday to as low as $15,800 at a cryptocurrency exchange Bitstamp.
It has since pared some of the losses and is down about 7 per cent in early trade. The digital currency has been sliding since it had hit a record high of $19,666 on Sunday.
In early Tokyo trade, Bitcoin dropped to $15,815.78 from $18,000 on Tuesday, according to data compiled by Bloomberg.
The cryptocurrency recovered to around $16,000 in early afternoon trade in Tokyo.