The global sell-off in equities caused the prices of the virtual currency to fall.
On Friday, the asset fell to a six-week low, officially entering bear market territory.
According to the data from Coin Metrics, the price of the digital currency sank to its lowest level in more than a year. The all-time high of nearly $69,000 was hit earlier this month, but it is down 20% from there.
Bear markets are defined by a decline of 20% or more from recent highs.
Friday was the day that other cryptocurrencies plummeted. The second-biggest coin, ether, fell more than 10% to $4,007.
Digital currencies are falling in tandem with other risk assets as panic over a new variant of the coronaviruses spreads.
The World Health Organization gave a presentation on the new variant, which is thought to contain more than 30 genes. The U.K. and other nations have stopped flights from six African countries.
The yellow metal is often referred to as digital gold by its proponents.
The virtual currency is a store of value and a hedge against inflation according to investors.
