Bitcoin and the wider crypto market has suffered a major crash in a broader market downturn that could be hit by a serious bombshell this week.

The bitcoin price, which crashed to under $50,000 per bitcoin on Monday before rebounding slightly, touched $70,000 in July amid excitement over Donald Trump's

Bitcoin and the wider crypto market has crashed this week, wiping away weeks of gains and triggering a serious Coinbase warning.

Bitcoin’s price crashed to under $50,000 per bitcoin on Monday, before rebounding slightly. It had touched $70,000 in July amid excitement over Donald Trump's "game-changing" plans for bitcoin, but the combined bitcoin and crypto market lost around $800 billion from its recent June highs.

Now, the head of institutional research at crypto exchange Coinbase has warned of further bitcoin price volatility to come—despite billionaire investor Mark Cuban making a "crazy" bitcoin price prediction.

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The latest bitcoin price crash sparked fears the crypto market could be headed for further ... [+] losses.

"We believe that these market jitters will persist in the short-term, but it’s possible that shorts could get squeezed here, which could lead to a market rebound in the next few days," Coinbase's David Duong wrote in a blog post. "But don’t be fooled into thinking that this market disruption is over."

The crypto market began crashing on Sunday as Japan stocks sold off due to the unwinding of the massive Japanese yen carry trade, which saw investors borrowing in a currency with low interest rates and reinvesting the proceeds in higher-yielding assets elsewhere.

The carry trade unwound after the Bank of Japan hiked its benchmark interest rate last week and was called "the biggest carry trade the world has ever seen," by Societe Generale's chief foreign exchange strategist Kit Juckes, who added "the tougher question is what happens next."

According to Duong, "recession fears could yet intensify," in the weeks ahead.

"We think this phase may last through the Fed decision in mid-September. Consequently, we retain our forecast for a choppy market in the third quarter but also believe that this pullback does not represent the start of a new market cycle. Rather, the current sell off is consistent with our defensive approach in the third quarter and more constructive outlook for the fourth quarter, albeit the strength of this move tests our conviction."

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Bitcoin's decline over the last few days has been outpaced by some smaller cryptocurrencies, with the downturn expected to wipe out some so-called "altcoins."

“The prevailing negative mood is particularly detrimental to altcoins, many of which are experiencing severe volatility and market cap erosion," analysts with the Bitfinex bitcoin and crypto exchange wrote in emailed comments. "Some of these altcoins may not survive the ongoing market correction.”

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