Goldman Sachs analyst James Yaro said in a research note that the decline in Bitcoin and the overall cryptocurrency market has roughly reached the historical average level between the peak and trough of the current cycle. According to Mr. Yaro, although there has been some fluctuation in Bitcoin and virtual currency-related stocks in recent weeks, the market as a whole has been stable.
But analysts warned that trading volumes could fall further. Yaro pointed out that Bitcoin prices are susceptible to sharp fluctuations in environments with low trading volumes, and such movements may not be enough to establish a sustained uptrend. Noting that historically trading volumes have shown strong recoveries about three months after reaching their lowest point, Yaro predicted that if trading volumes decline further, crypto companies could see a 2% revenue decline and a 4% profit decline by 2026.
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Meanwhile, Goldman Sachs CEO David Solomon said at the World Liberty Forum in Mar-a-Lago, Florida last month that he owns a small amount of Bitcoin. This statement was seen as a notable change compared to Solomon’s more cautious stance in 2024.
On the market side, Bitcoin prices have fallen to the $60,000 level this week. David Morrison pointed out that Bitcoin previously encountered resistance at the $72,000 level and then pulled back. Morrison said the daily MACD indicator is currently flat at a neutral level, and the direction of the short-term trend remains uncertain.
*This is not investment advice.
