The value of Bitcoin fell below $6,000 on Tuesday morning for the first time since mid-November.

Ethereum, litecoin, bitcoin cash and ripple all also fell by at least 10 per cent as the cryptocurrency markets continue to stutter.

Unlike traditional markets, virtual currencies trade 24/7.

Data provider CoinMarketCap.com has estimated the current global market to be worth $285 billion after reaching a peak of $830 billion at the start of January.

Bitcoin fell to $8,291.87 last week, a drop of 30 per cent over the week. It reached of high of $19,000 last November.

Earlier this week Lloyds Banking Group banned its customers from buying cryptocurrencies on its credit cards.

Eight million credit card customers of Lloyds Bank, Bank of Scotland, Halifax and MBNA are now unable to purchase Bitcoin and any other cryptocurrencies. However its debit card customers are still able to do so.

The drop in the value of Bitcoin and other cryptocurrencies came after Indian politician Arun Jaitley, the country’s finance minister, said it wanted to eradicate payments made in virtual coins. 

“The Government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system,” he said.

“The Government will explore use of block chain technology proactively for ushering in digital economy.”