Bitcoin skids as traders worry that Korea will crack down

Bitcoin is dropping sharply as traders worry that regulators in South Korea will crack down on trading of digital currencies.

Bitcoin has slumped about 30 percent this week after South Korea's finance minister said Tuesday the government could still ban trading in virtual currencies, an idea another official discussed last week.

The price of bitcoin fell 13 per cent to $9,823 at 1:26 p.m. Eastern Time, Wednesday according to Coindesk.

Bitcoin hasn't caught on as a currency for buying things, as intended. But it has drawn huge interest from traders, and its price has soared over the past year. It went from $1,000 at the beginning of last year to nearly $20,000 in December.

Many financial pros believe bitcoin is in a speculative bubble that could crash any time.