Bitcoin skids as traders worry that Korea will crack down

The recent price drop also followed Bitcoin declining in value from around the $20,000 mark at the end of 2017.

Just last week, billionaire investor Warren Buffett warned with "almost certainty" that cryptocurrencies "will come to a bad ending".

The contagion has also spread to smaller currencies, with ripple, litecoin and monero all down this week.

In the past few weeks, bitcoin has been steadily declining due to fear of regulation by governments.

Bitcoin has fallen 25% as fears of regulatory crackdowns in South Korea, China and Japan have intensified.

"Market jitters over South Korea potentially banning cryptocurrency trading has effectively eroded investor appetite for bitcoin", said Lukman Otunuga, research analyst at FXTM.

China, which first began targeting the industry a year ago, is escalating its clampdown on cryptocurrency trading, particularly online platforms and mobile apps that offer exchange-like services, according to people familiar with the matter.

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Investing in virtual money like Bitcoin can be quite hazardous to one's savings and health, especially if you have no idea what you're doing. Russian president Vladamir Putin was also vocal about potential regulation of cryptocurrency, saying, "In broad terms, legislative regulation will be definitely required in the future".

"The Bitcoin bubble appears to have a rather large puncture", said Paul Donovon, the global chief economist at UBS. Well, some say not so much. Exactly one month later, bitcoin has lost over half its value.

The country has seen a huge bitcoin craze, with young and old betting on the crypto currency to build wealth.

This sharp drop in value caused widespread panic among investors, with many labelling the price movement "Bitcoin's crash".

From this issue, many people are afraid and they started selling the coins which lead to falling on the market.

"There are no disagreements over regulating speculation", such as using real-name accounts and levying taxes on crypto currency trading, Kim said.

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