Bitcoin dropped to $6,800 on the Luxembourg-based Bitstamp exchange by 1200 GMT, before recovering a little to $6,870 just over 20 minutes later.
On Wednesday around 1800 GMT, it had touched $7,888 after a software upgrade planned for next week that could have split the cryptocurrency in two was suspended.
As bitcoin fell, Bitcoin Cash - a clone of the original that was generated from another split on Aug.1 - surged, trading up as much as 35 percent on the day at around $850, according to industry website Coinmarketcap.
Despite losing almost 7 percent this week, bitcoin is still up more than 600 percent so far this year.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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