Bitcoin's value has dipped below $8,000 for the first time in 11 weeks. It fell 12 percent on Friday to a two-month low of $7,910 on the Luxembourg-based Bitstamp exchange, but has now recovered to $8,500, , according to CoinMarketCap.com.
The overall cryptocurrencies plunged on Friday, with several of the largest falling by more than 20 percent. The slump in prices the total market value of cryptocurrencies is down to $395 billion, less than half the high it reached in January.
The fall comes amid a number of recent incidents that appear to have shaken faith in cryptocurrencies.
This week, the Indian government said it would ban all cryptocurrency trading and Facebook said it would ban adverts for digital currencies.
Social media website Facebook said this week it would ban cryptocurrency advertising because many were associated with misleading or deceptive promotional practices, while U.S. regulators have sent a subpoena to two of the world’s biggest cryptocurrency players, Bitfinex and Tether.
A massive $530 million hack of a Japanese cryptocurrency exchange Coincheck last week has also renewed concerns about the security of the industry.