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Bitcoin gets bit by a summertime swoon

Bitcoin fell sharply Wednesday, touching lows against the dollar not seen since May.

The drop comes after a stable July for the cryptocurrency, and a strong run that has seen bitcoin hold above $560 since May 26. The slide began on Monday—the same day the Consumer Financial Protection Bureau announced new warnings about the digital currency—and accelerated Wednesday morning, according to pricing data from CoinDesk.

Read More CFPB creates complaint center for bitcoin 'Wild West'

According to CoinDesk, the currency has only once finished the day on more than a 5 percent change since May: Bitcoin rose almost 7 percent on June 30. Its last drop of over 5 percent was on June 12.

At its lows on Wednesday, CoinDesk's price index had fallen more than 6 percent on the day.

Still, some argue that the fall is part of an orderly correction for the notoriously volatile cryptocurrency.

In a blog post for CryptoCoinsNews, Venzen Khaosan argued that technical analysis predicted the current fall, with $525 as an expected bottom. News events, such as the CFPB announcement, he added, have not typically moved the market.

—By CNBC's Everett Rosenfeld