Bitcoin is back trading at just below $53,000 after briefly dipping below the $50,000 mark in New York earlier.

That translated to a loss on the day of around 8%, having fallen as much as 17%.

The value of the digital currency dropped from a record high of $58,000 after Tesla founder Elon Musk suggested prices seemed high.

The price of Bitcoin surged in recent weeks after Musk's electric car company revealed that it had bought $1.5 billion worth of the crytocurrency and would start accepting it as a form of payment.

"Elon Musk is providing a two way market for bitcoin all on his own these days," Craig Erlam, Senior Market Analyst with Oanda said.

"The Tesla CEO suggested prices do seem high which appears to have been taken by some to be a "take some profit" signal." 

He suggested that the euphoria of recent moves should 'probably make people nervous'. 

"I'm sure new highs are just around the corner," he said.

Price swings of more than 10% aren't a rarity in cryptocurrency trading. 

Bitcoin climbed to almost $20,000 in 2017 before shedding 80% of its value the following year.

US Treasury Secretary Janet Yellen warned today that Bitcoin was a "highly speculative asset."

The digital coin is up more than 80% so far this year. 

Last week, bitcoin hit $1 trillion in market value for the first time.