Bitcoin players are debating the reason for the latest big drop in prices, with some commentators pointing to the closure of the first futures contracts on the Chicago Stock Exchange (CBOE) as likely playing a role.
Pricing on many exchanges had previously been notoriously volatile, especially in South Korea, possibly skewing crypto prices to the upside.
The entrance of more mainstream exchanges however may have ushered in greater price efficiency.
A month following the launch of the first bitcoin futures contracts on the CBOE, the January contracts closed at $11055 on Wednesday.
It marked a 43% drop from the peak bitcoin reached on December 17.
"If you look at the whole cryptosphere, you will notice that other products also have liquidity and a conditional size, that is, it makes sense (to launch) derivatives," said CBOE president and chief operating officer Chris Concannon on Wednesday.
Concannon also revealed the CBOE was studying other cryptocurrencies as possible candidates for futures on the exchange.
Much of the panic selling on Wednesday, however, appeared to be driven by worries surrounding a regulatory crackdown on bitcoin, especially in China and South Korea.
On Wednesday, the bitcoin selling pressure was so intense that the price dropped below the $10,000 mark.
Another sharp fall?
In a research note on Wednesday analysts at Citibank also warned that bitcoin could easily suffer another sharp fall, with technical factors indicating the crypto could slump into a range of $5,605 to $5,673 based on technical factors.
The analysts claimed another big price fall could come very quickly.
On Thursday, however, the market appeared to have regained some composure, with bitcoin trading around the $11,250 level as at 1100 GMT.