The price of cryptocurrency Bitcoin fell to below $6,000 (£4,700) on Tuesday as the cost of other cryptocurrencies declined by billions of dollars amid a new sell off.

Bitcoin fell from around $17,000 at the start of the year and lost 6pc of its value over 24 hours. Its current price is close to its lowest point of the year, which it hit on June 18th at $5,785 (£4,524).

Cryptocurrencies are digital coins that only exist online. They operate on a digital ledger, which records all transactions. While the price of cryptocurrencies reached record highs during a sudden bubble in December, they have gradually fallen in value closing in on the levels they were at in early 2017.

Bitcoin isn't alone in its price drop. Over the past 24 hours, rival digital currency Ethereum fell 16pc and Ripple dropped 14pc, according to CoinMarketCap. In the past five days, all cryptocurrencies have seen falls totalling around $60bn.

"The crypto market seems to have hit panic mode, with prices falling significantly across the board," said Matthew Newton, an analyst at cryptocurrency trading company eToro. "Bitcoin is still range-bound for now between $5,700 to $8,000 in line with how it has traded over the past few months."