However, the cryptocurrency began to show signs of a steady recovery over the last few days with its price climbing to more than $9,000 on Saturday morning, representing a 5 per cent rise in value over 24 hours.
However, any signs of a Bitcoin recovery were quickly quashed as the digital money then saw its price once again drop.
“However, that means it is not immune, and should not be immune, from price corrections either.
“A significant price correction and the long term viability of bitcoin as a major alternative currency are not mutually exclusive.”
Up until now the online money has been unregulated, adding interest to digital currencies because of its freedom.
South Korea introduced a raft of measures last month aimed at regulating Bitcoin and similar currencies such as Ripple and Ethereum.
A ban on anonymous trading was implemented by the Asian power in a bid to crack down on all possible criminal activities the secret nature of trading Bitcoin allowed.
Meanwhile, India’s Government has said it does not consider cryptocurrencies to be legal tender and will try to phase out payments using the online money.
Japan has also announced its intention to introduce more rules around trading the digital money.