Goldman Sachs analyst James Yaro said in a research report that the decline of Bitcoin and the overall cryptocurrency market has largely reached historical average levels between the peak and trough of the current cycle. According to Yaro, although there have been fluctuations in Bitcoin and cryptocurrency-related stocks in recent weeks, the market as a whole is tending to stabilize.
However, the analyst warned that trading volumes could fall further. Yaro noted that Bitcoin prices are susceptible to sharp swings in low-volume environments and such moves may be insufficient to establish a sustainable uptrend. Pointing out that historically, trading volumes have shown a strong recovery around three months after hitting a low point, Yaro predicted that if volumes decline further, crypto companies could see a 2% decline in revenue and 4% decline in profits by 2026.
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On the other hand, Goldman Sachs CEO David Solomon said 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 change from Salomon’s more cautious stance in 2024.
On the market side, the price of Bitcoin fell back to the $60,000 level this week. David Morrison noted that Bitcoin previously encountered resistance at the $72,000 level and then pulled back. According to Morrison, the daily MACD indicator is currently trading at a neutral level and the direction of the short-term trend remains uncertain.
*This does not constitute investment advice.
