STREAMING NOW: Watch Now

Bitcoin bloodbath -- cryptocurrency plunges 20% in two days

Bitcoin investors are getting their digital butts kicked lately. Hard. Bitcoin prices have plunged more than...

Posted: Sep 6, 2018 5:47 PM
Updated: Sep 6, 2018 5:48 PM

Bitcoin investors are getting their digital butts kicked lately. Hard. Bitcoin prices have plunged more than 20% in the past two days.

Ethereum, Litecoin, Ripple and other cryptocurrencies have suffered similarly large drops. The reason for the latest pullback? A Business Insider report that investment banking giant Goldman Sachs may be dropping plans to launch a crypto trading desk.

Goldman Sachs told CNNMoney though that it hadn't made a firm decision about bitcoin or other cryptocurrencies just yet.

"In response to client interest in various digital products, we are exploring how best to serve them in the space. At this point, we have not reached a conclusion on the scope of our digital asset offering," Goldman Sachs said in a statement.

But if Goldman Sachs is pulling back, that is not good news.

Naeem Aslam, chief market analyst with ThinkMarkets UK who is bullish on bitcoin, said in an email that "there is no doubt that the bitcoin price is supported by this hype that institutional banks are going to get involved."

Stories first surfaced about a possible Goldman Sachs push into bitcoin and other cryptocurrencies last December, shortly after the two big futures trading companies -- the CBOE and CME -- set up exchanges for bitcoin contracts.

Goldman Sachs confirmed in May that it was thinking of using its own money to start trading bitcoin, according to the New York Times.

Bitcoin prices, which were hovering near a record high of about $20,000 in December, have lost more than two-thirds of their value since then and currently trading at around $6,400.

Hussein Sayed, chief market strategist at currency brokerage FXTM said in a report Thursday that it's possible prices could fall below $5,000.

So it might make sense for Goldman Sachs to take a more cautious approach to this extremely volatile market. Most of the news about bitcoin has been negative lately.

Google, Facebook and Twitter have banned some cryptocurrency ads.

The Securities and Exchange Commission blocked several proposals for bitcoin exchange-traded funds in the past few months, including plans from ETF giants ProShares and Direxion and one backed by the Winklevoss brothers of Facebook fame.

Several publicly traded companies have also tried to latch onto the crypto craze, leading to more concerns that bitcoin could be a bubble. Overstock has de-emphasized much of its struggling online retail business to focus on cryptocurrencies.

Bioptix, a maker of hormones for farm animals, changed its name to Riot Blockchain. The stock surged -- until the company disclosed the SEC was probing it.

Beverage company Long Island Iced Tea morphed into Long Blockchain. It's since been delisted by the Nasdaq and now trades as a so-called bulletin board stock at a price below 20 cents a share.

Some companies also began selling digital tokens through initial coin offerings to raise money.

Eastman Kodak -- yes, the camera and film company -- created its own KodakCoin. There's even a PotCoin for the legal marijuana and cannabis industry.

Many of these initial coin offerings are legitimate. But there have been scams too. The SEC even created a fake ICO called HoweyCoins to show how easy it is for investors to get duped.

And several titans of business have blasted bitcoin as well.

JPMorgan Chase CEO Jamie Dimon has called bitcoin a "fraud" that was only good for drug dealers and North Korea.

Billionaire investor Saudi Prince Alwaleed, whose Kingdom Holding Company owns stakes in Apple, Citigroup and Twitter, told CNBC late last year he thought bitcoin was an "Enron in the making" that will implode.

Warren Buffett and Charlie Munger of Berkshire Hathaway have also warned investors to stay away from bitcoin.

Buffett told CNBC in early May bitcoin was "probably rat poison squared" while Munger said at the Berkshire shareholder meeting that the thought of owning cryptocurrencies was "just dementia."

It's also worth noting that the recent plunge in bitcoin comes at a time when the Turkish lira, Indian rupee and Argentine peso are in freefall mode as the dollar strengthens.

So investors don't seem to be willing to bet on bitcoin as a replacement for fragile emerging markets currencies.

Still, the pullback in bitcoin comes even as more and more businesses and organizations have embraced blockchain technology, the digital ledger that keeps records of transactions in virtual currencies.

IBM is a big proponent of the blockchain. The World Bank has announced plans to launch a blockchain bond. There's even a company that wants to run a fantasy football league using blockchain. (Call me old school. But I'll stick with Yahoo for my league.)

There is a clear difference between bitcoin and blockchain. The future of money may still very well be digital, but that doesn't mean that bitcoin or the scores of other virtual currencies out there will all survive and thrive.

CNNMoney's Julia Horowitz contributed to this report.

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 64400

Reported Deaths: 1825
CountyConfirmedDeaths
Hinds5416112
DeSoto347227
Madison236360
Harrison228735
Rankin220231
Jackson215641
Jones182857
Forrest170155
Washington154835
Lauderdale137990
Lee129732
Neshoba126490
Lamar117713
Oktibbeha107737
Lowndes102333
Bolivar101032
Warren99531
Scott97820
Panola96012
Sunflower94223
Copiah92928
Lafayette90714
Leflore88261
Pike86133
Holmes85948
Grenada81921
Yazoo80312
Lincoln78741
Pontotoc7808
Leake77625
Simpson76730
Wayne74921
Monroe73151
Coahoma68410
Tate68327
Marion63419
Marshall6169
Covington60313
Adams59625
Winston59315
Union55215
George5454
Newton53011
Pearl River51537
Tallahatchie51210
Attala51024
Walthall48219
Chickasaw43819
Noxubee43811
Claiborne39913
Calhoun3929
Smith38913
Clay38014
Jasper3799
Alcorn3775
Prentiss3699
Hancock34914
Tishomingo3445
Itawamba32310
Clarke32225
Tippah32013
Tunica3076
Yalobusha30410
Lawrence3027
Montgomery3023
Humphreys28111
Carroll24811
Quitman2381
Greene23011
Kemper22715
Jefferson Davis2256
Perry2207
Amite2176
Webster21112
Jefferson1936
Wilkinson19313
Sharkey1913
Stone1603
Choctaw1294
Benton1280
Franklin1152
Issaquena241
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 91776

Reported Deaths: 1639
CountyConfirmedDeaths
Jefferson12186230
Mobile9269204
Montgomery6350148
Madison512227
Tuscaloosa400269
Baldwin332223
Shelby311932
Marshall300134
Unassigned287856
Lee255442
Morgan227015
Etowah196728
DeKalb172113
Elmore163337
Calhoun162713
Walker147964
Houston133412
Dallas129823
Russell12672
St. Clair125214
Limestone122713
Franklin121520
Cullman117112
Colbert112213
Lauderdale111113
Autauga103021
Escambia98115
Talladega94613
Jackson8904
Chambers83238
Tallapoosa82778
Dale79823
Butler75435
Blount7453
Chilton7386
Coffee7255
Covington71620
Pike6727
Barbour5645
Lowndes56124
Marion54724
Marengo52914
Clarke4919
Hale45926
Bullock44411
Winston43511
Perry4324
Wilcox41110
Monroe3964
Randolph39210
Bibb3844
Pickens3769
Conecuh37310
Sumter36018
Lawrence3251
Macon31613
Washington31512
Crenshaw3073
Choctaw27612
Cherokee2497
Greene24711
Henry2473
Geneva2430
Clay2255
Lamar2052
Fayette1785
Cleburne1211
Coosa952
Out of AL00
Tupelo
Clear
87° wxIcon
Hi: 89° Lo: 67°
Feels Like: 88°
Columbus
Clear
91° wxIcon
Hi: 90° Lo: 68°
Feels Like: 95°
Oxford
Clear
88° wxIcon
Hi: 86° Lo: 64°
Feels Like: 88°
Starkville
Scattered Clouds
88° wxIcon
Hi: 88° Lo: 64°
Feels Like: 88°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather