Goldman Sachs Assesses the Future of Bitcoin Prices: “Trading Volumes Will Decline”

Goldman Sachs analyst James Yaro stated in a research report that the decline in Bitcoin and the overall cryptocurrency market has largely reached the historical average levels between the peak and the trough in the current cycle. According to Yaro, while there have been fluctuations in Bitcoin and crypto-related stocks in recent weeks, the market as a whole is tending towards stabilization.

However, the analyst warned that trading volumes could fall even further. Yaro noted that Bitcoin prices are susceptible to sharp fluctuations in low-volume environments, and that such movements may be insufficient to establish a sustained uptrend. Pointing out that historically, trading volumes have shown a strong recovery approximately three months after hitting a low point, Yaro predicted that if volumes decline further, crypto companies could see a 2% drop in revenue and a 4% drop in profits by 2026.

On the other hand, Goldman Sachs CEO David Solomon stated last month at the World Liberty Forum in Mar-a-Lago, Florida, that he owns a small amount of Bitcoin. This statement was seen as a notable shift compared to Solomon’s more cautious stance in 2024.

On the market side, the Bitcoin price has fallen back to the $60,000 level this week. David Morrison noted that Bitcoin previously encountered resistance at the $72,000 level and then retreated. According to Morrison, the daily MACD indicator is currently trading sideways at a neutral level, and the direction of the short-term trend remains uncertain.

*This is not investment advice.