Bitcoin took a sharp nosedive on Monday, falling 10.8% to $52,827 by 12:25 UK time, according to CoinDesk.
This sharp decline comes amid a broader sell-off in risky assets worldwide, with Bitcoin losing more than 21% of its value over the past five sessions.
Despite this recent downturn, Bitcoin has still gained nearly 26% since the beginning of the year.
Other cryptocurrencies also faced steep declines, with Ether plunging 15.3% to $2,330, marking its biggest drop since 2021.
The fall in Bitcoin is part of a wider market panic, with Japan's stock index tumbling 12.4% on Monday, its largest drop since October 1987. U.S. Nasdaq Composite futures were also down 4.2%.
The sharp decline in these assets has been driven by mounting fears of a U.S. recession following weak economic data released last week.
Goldman Sachs has revised its outlook, now predicting a 25% chance of a U.S. economic contraction in the next year, up from 15%.
Markets are also anticipating that the Federal Reserve might hold an emergency meeting this week to cut its key interest rate by 25 basis points.
"The market is in panic mode," said Grace Chen, head of the cryptocurrency exchange Bitget.
