Rough minute for Bitcoin investors as value plummets 87 per cent

Bitcoin investors had a scare last night when the value of the popular cryptocurrency plummeted 87 per cent.

Bitcoin went from a near-record price of US$65,815 to US$8200 ($88,035 to $10,968) on trading platform Binance.US in under a minute last night.

The price quickly returned to nearly its original value, with Binance admitting an error had occurred.

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"One of our institutional traders indicated to us that they had a bug in their trading algorithm, which appears to have caused the sell-off," the company said in a statement to Markets Insider.

It came after Binance chief executive Changpeng Zhao warned of extreme cryptocurrency fluctuations.

"Expect very high volatility in #crypto over the next few months," Mr Zhao, also known as CZ, wrote on Twitter.

Some investors are now predicting even bigger gains for Bitcoin, despite continued criticism of the cryptocurrency by JPMorgan Chase CEO Jamie Dimon, who recently called bitcoin "worthless".

"Given the price momentum we are seeing on the back of bitcoin's ETF, we believe that Bitcoin can easily go all the way to (US$100,000) by the end of this year," Naeem Aslam, chief market analyst with AvaTrade, said in a report this week.

- reported with CNN