The price of Bitcoin has plunged below $US250 and appears to be in freefall, as sell orders dominate global exchanges and investors flee the cryptocurrency.

Bitcoin's entrance into 2015 has been appalling, in the last 10 days alone the price has lost 26 per cent in value. Its rapid decline in recent weeks suggests confidence in the virtual currency is evaporating.

Confidence in the virtual economy appears to be waning. Credit:Getty Images

On Wednesday, CoinDesk recorded the price dropping to about $224 from $267, below where it began in April 2013. Large sell orders were triggered as Bitcoin sank through the $US250 mark, which traders have flagged as an imporant psychological barrier.

"We are seeing some huge orders sitting waiting at the $US200 mark and a lot of volume," an IG analyst told Fairfax Media. "That could be the next resistance point but we don't really know where Bitcoin is heading at the moment.