The value of Bitcoin dropped to $9,000 today, 24 hours after it reached an all-time high of $11,395.
The popular cryptocurrency however rose back to $9,400 shortly after on Thursday on the Luxembourg-based Bitstamp exchange.
The incredulous price surge in recent times has been blamed for the drop. Its closest rival, Ethereum, also lost as much as 19%.
“Naturally a few of the early bitcoin traders are taking some profits off the table,” said Charles Hayter, founder of CryptoCompare.com.
“Volatility is in the market at the moment and that means both positive and negative moves.”
Bitcoin’s rise has seen an increase in interest in digital currencies, as many people try to understand and invest in it. Google’s Nigeria search trends show an increase in bitcoin searches over the past three months.
London-based Blockchain.info, one of the biggest global bitcoin wallet-providers, told Reuters on Wednesday it had added a record number of new users on Tuesday, with more than 100,000 customers signing up, taking the total number to more than 19 million.
Bitcoin’s rapid ascent has prompted warnings from a stream of prominent investors that it had reached bubble territory, while the Bank of England deputy governor on Wednesday said investors should “do their homework” before investing in the digital currency.