Cryptocurrency analysts have renewed their price forecasts following bitcoin's recent crash, with some prominent figures predicting it will still hit record highs before the end of the year.

Bitcoin's record-breaking price gains over the last month came crashing to an end at the start of June, as more than $1,000 was wiped from its value.

It is currently trading below $8,000, less than half the value it reached in late 2017 when a major price rally saw it almost hit $20,000. Yet experts note that he recent dip does not necessarily mean a market turnaround.

"I believe bitcoin has the potential to hit $25,000 by the end of 2019 or early 2020," prominent bitcoin analyst Oliver Isaacs told The Independent.

"There are multiple drivers behind the recent resurgence. There are geopolitical, technological and regulatory drivers. The net effect of the trade war between the US and China has led to the sudden interest in bitcoin as a hedge on investments."

Bitcoin's volatile history in pictures Show all 8 1 /8 Bitcoin's volatile history in pictures Bitcoin's volatile history in pictures Satoshi Nakamoto creates the first bitcoin block in 2009 On 3 January, 2009, the genesis block of bitcoin appeared. It came less than a year after the pseudonymous creator Satoshi Nakamoto detailed the cryptocurrency in a paper titled 'Bitcoin: A peer-to-Peer Electronic Cash System' Reuters Bitcoin's volatile history in pictures Bitcoin is used as a currency for the first time On 22 May, 2010, the first ever real-world bitcoin transaction took place. Lazlo Hanyecz bought two pizzas for 10,000 bitcoins – the equivalent of $90 million at today's prices Lazlo Hanyecz Bitcoin's volatile history in pictures Silk Road opens for business Bitcoin soon gained notoriety for its use on the dark web. The Silk Road marketplace, established in 2011, was the first of hundreds of sites to offer illegal drugs and services in exchange for bitcoin Bitcoin's volatile history in pictures The first bitcoin ATM appears On 29 October, 2013, the first ever bitcoin ATM was installed in a coffee shop in Vancouver, Canada. The machine allowed people to exchange bitcoins for cash REUTERS/Dimitris Michalakis Bitcoin's volatile history in pictures The fall of MtGox The world's biggest bitcoin exchange, MtGox, filed for bankruptcy in February 2014 after losing almost 750,000 of its customers bitcoins. At the time, this was around 7 per cent of all bitcoins and the market inevitably crashed Getty Images Bitcoin's volatile history in pictures Would the real Satoshi Nakamoto please stand up In 2015, Australian police raided the home of Craig Wright after the entrepreneur claimed he was Satoshi Nakamoto. He later rescinded the claim Getty Images Bitcoin's volatile history in pictures Bitcoin's big split On 1 August, 2017, an unresolvable dispute within the bitcoin community saw the network split. The fork of bitcoin's underlying blockchain technology spawned a new cryptocurrency: Bitcoin cash REUTERS Bitcoin's volatile history in pictures Bitcoin's price sky rockets Towards the end of 2017, the price of bitcoin surged to almost $20,000. This represented a 1,300 per cent increase from its price at the start of the year Reuters

A growing number of investors are beginning to view bitcoin as an established safe haven that operates in a market that is finally being protected through regulatory oversight, according to Mr Isaacs.

He also points to signs of increased adoption for bitcoin and other cryptocurrencies, with major organisations and retailers like Microsoft, Amazon, Starbucks and Whole Foods opening up to payments from virtual currencies.

Other notable figures within the cryptocurrency space have been even more optimistic when forecasting bitcoin's future price.

Billionaire investor Tim Draper renewed his claim earlier this year that bitcoin will reach $250,000 by 2023 – a prediction he first made when the price of the cryptocurrency was around $5,000.

Cryptocurrency markets crashed at the start of June but analysts still predict bitcoin could reach record highs before 2020 (Getty Images)

"It's going to keep going [up in price] because I'm a believer that in four years, something like that, bitcoin will be about a 5 per cent market share of the Earth," Mr Draper said.

"It's a better currency, it's decentralised, open [and] transparent – everybody knows what happens on the blockchain."

Beyond its huge price gains, Mr Draper claims bitcoin will replace other forms of mainstream payment within a few years.

"I think when you go to Starbucks to buy a cup of coffee, and you try to pay with dollars, they will laugh at you because you are not using bitcoin or other cryptocurrency," he said. "It will be like the old lady paying out with pennies."