Goldman Sachs analysts say that Bitcoin prices may have reached the bottom of this cycle, but trading volume may decline further

Goldman Sachs analyst James Yaro stated in a research report that the decline in Bitcoin and the cryptocurrency market has roughly reached the historical average level from peak to trough in this cycle. In recent weeks, Bitcoin and cryptocurrency-related stocks have shown volatile but stabilizing performance. However, Yaro warned that trading volume may decline further, and in a low trading volume environment, Bitcoin prices are prone to significant fluctuations, making any rebound difficult to sustain.

He pointed out that trading volume typically remains at a low for about three months before showing a significant rebound. If trading volume continues to decline, cryptocurrency company revenues in 2026 could decrease by 2%, and profits could drop by 4%. Goldman Sachs currently rates Robinhood, Figure Technologies, and Coinbase as "buy," with the stock prices of these three companies down at least 50% from their historical highs. Yaro indicated that digital asset-related targets 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 in his stance for 2024. This week, Bitcoin's price fell back to around $60,000, and Trade Nation senior market analyst David Morrison noted that Bitcoin previously encountered resistance and fell back around $72,000. Currently, the daily MACD indicator is flattening at a neutral level, and the short-term trend direction remains unclear.