Prices have now fallen 52 percent since bitcoin's all time high $19,343.04 in December. This is the lowest its been since early December and comes less than a month after its value topped $20,000 on 18 December.
Before asserting that Bitcoin has crashed, however, it is important to take note of the cryptocurrency market as a whole and Bitcoin's relative performance.
The influential investor Warren Buffett has also made negative pronouncements about Bitcoin and other virtual currencies, and has steered clear of them when making purchases for his Berkshire Hathaway investment fund.
Korea is home to one of the world's biggest private bitcoin exchanges, with more than 2 million people estimated to own some of the best-known digital currency.
But the proposed move by South Korea would go even further, meaning an outright ban rather than restricted access, and is reportedly inspired by a desire to target "speculative frenzy and crime" associated with cryptocurrencies. Other currencies like Ripple, Ethereum, BitcoinCash and Litecoin have experienced steep falls. Shutting down digital currency exchanges is "a live option but government ministries need to very seriously review it", he added.
Many Bitcoin investors are panicking over the currency's recent "crash", with media outlets and analysts speculating as to whether the Bitcoin "bubble" has popped. But that's little comfort to bitcoin investors who have seen prices tumble this year after the cryptocurrency surged 1,400% last year.