South Korea's justice minister said bitcoin had started to resemble 'gambling and speculation'.
WION Web Team
Bitcoin's value fell sharply on the Bitstamp exchange falling $10,567 after reaching a high of $11,794.7.
Cryptocurrencies Ethereum and Ripple also slid this week. The slide on Tuesday was a six-week low for the fast-moving virtual currency which hit an all-time high last month.
In December bitcoin had topped $20,000 as the cryptocurrency broke new ground.
South Korea holds the world’s largest cryptocurrency exchange. Last week South Korean government said it was planning to ban the cryptocurrency exchange.
South Korea's justice minister Park Sang-Ki said his ministry was preparing a bill to shut down the country's virtual coin exchanges.
The minister said the bitcoin had started to resemble "gambling and speculation".
Meanwhile, China is also preparing to crackdown again on cryptocurrency, state media reported.
Beijing had shutdown bitcoin exchanges and banned all initial coin offerings.