Goldman Sachs Analyst Says Bitcoin Price May Have Hit Bottom of This Cycle, But Trading Volume Could Decline Further

Odaily News Goldman Sachs analyst James Yaro stated in a research report that the decline in Bitcoin and the crypto market has roughly reached the historical average from peak to trough for this cycle. In recent weeks, Bitcoin and crypto-related stocks have shown volatility but are trending towards stabilization.

However, Yaro warned that trading volume could decline further. In a low-volume environment, Bitcoin prices are prone to sharp fluctuations, and any rebound may be difficult to sustain. He pointed out that trading volume typically bottoms out for about three months before a significant recovery. If trading volume declines further, crypto company revenues could decrease by 2% and profits by 4% in 2026.

Goldman Sachs currently maintains a "Buy" rating on Robinhood, Figure Technologies, and Coinbase. The stock prices of these three companies have all fallen at least 50% from their historical highs. Yaro stated that digital asset-related assets are presenting increasingly attractive entry points.

Goldman Sachs CEO David Solomon revealed last month at the World Liberty Forum held at Trump's Mar-a-Lago in Florida that he holds a small amount of Bitcoin, marking a shift from his stance in 2024.

This week, Bitcoin's price retreated to around $60,000. David Morrison, Senior Market Analyst at Trade Nation, noted that Bitcoin previously faced resistance and retreated near approximately $72,000. Currently, the daily MACD indicator is flattening near neutral levels, and the short-term trend direction remains unclear.