After a substantial drop on Wednesday, the biggest Bitcoin exchange halted trading in the online currency on Thursday.
Dismissed by some as a Ponzi Scheme and touted by others as the future of money, the price of a coin plunged to $130 from a record high of $260 on Wednesday.
But despite the recent drop, Bitcoin is still up over 800 percent year-to-date.
In a press release, Mt. Gox stated, "The rather astonishing amount of new accounts opened in the last few days added to the existing one plus the number of trade made a huge impact on the overall system that started to lag. As expected in such situation people started to panic, started to sell Bitcoin in mass (Panic Sale) resulting in an increase of trade that ultimately froze the trade engine!" (sic)
Traders looking to log in to the Mt. Gox, the biggest Bitcoin exchange, found a message stating "Trading is halted until 2013-04-12 02:00am UTC (10 p.m. ET) to allow the market to cool down following the drop in price."
(Read More: Bitcoin Bounces Back After Crashing Nearly 60% )
Bitcoin is a digital currency that unlike conventional money is bought and sold on a peer-to-peer network independent of any central control. Users can send money directly from their computers to others on the other side of the world, and coins can be used to buy real goods, swapped for cash on exchanges or used for speculation.
The currency has gained in prominence amid the euro zone sovereign debt crisis as more people start to question the safety of holding their cash in the bank. Bitcoins shot up in value in March when investors took fright at Cyprus' plans to impose losses on bank deposits.
-Reuters contributed to this report.
Click here for the latest on the markets.
More From CNBC