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

On March 28, 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 crypto-related stocks have shown volatility but are stabilizing. 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 noted that trading volume typically remains low for about three months before showing a significant recovery. If trading volume continues to decline, revenues for crypto companies in 2026 could decrease by 2%, and profits could drop by 4%. Goldman Sachs currently has ‘buy’ ratings on Robinhood, Figure Technologies, and Coinbase, all of which have seen their stock prices fall by at least 50% from historical highs. Yaro mentioned that digital asset-related targets are presenting increasingly attractive entry points. Goldman Sachs CEO David Solomon revealed last month at the World Liberty Forum hosted by Trump at 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 has fallen to around $60,000, and Trade Nation senior market analyst David Morrison pointed out that Bitcoin previously faced resistance and retreated around $72,000. Currently, the daily MACD indicator is flattening at a neutral level, and the short-term trend direction remains unclear.