- Goldman Sachs says crypto markets near turning point as prices stabilize after 46% drop, matching historical drawdown patterns.
- Low trading volumes remain risk, but ETF inflows and long-term holding trends support stability.
- Institutional signals and corporate adoption suggest Bitcoin may have reached a cycle bottom.
Bitcoin and crypto markets may be approaching a turning point after months of losses, according to Goldman Sachs. In a note, analyst James Yaro said prices have stabilized after a steep decline since October 2025. The shift follows weaker trading activity, changing investor behavior, and broader macro pressures shaping crypto valuations.
Market Drawdown Nears Historical Levels
According to Goldman Sachs, crypto-related stocks have fallen about 46% from their October 2025 highs. However, recent price action has turned flat despite ongoing volatility. This pattern often appears when markets approach historical drawdown ranges.
As a result, valuations across crypto equities have become more attractive. Goldman highlighted Robinhood, Figure Technologies, and Coinbase as key stocks to watch. Notably, Figure’s price target increased to $42 from $39, implying a 35% upside.
Meanwhile, Robinhood continues expanding services for advanced traders and financial products. Coinbase, on the other hand, focuses on derivatives, subscriptions, and equities trading. These shifts reflect efforts to diversify revenue streams during weaker market cycles.
Volume Trends Remain a Key Risk
However, Goldman warned that trading volumes could decline further in the near term. Lower activity may reduce 2026 revenue by 2% and profits by 4%. Historically, such low-volume periods last around three months before recovery begins.
This cautious outlook connects to broader market behavior. Bitcoin recently dropped from around $75,000 to $67,000 before stabilizing. Since then, it has traded within a $60,000 to $75,000 range.
K33 Research noted that reduced ETF selling and stronger long-term holding patterns support stability. Additionally, supply held for over six months has increased, indicating lower selling pressure.
Institutional Signals Point to Stabilization
Further supporting this trend, ETF flows have turned mildly positive since late February. This marks a shift from heavy distribution seen after October. Meanwhile, open interest remains low, and funding rates stay negative.
According to Bernstein, Bitcoin may have already reached its cycle bottom. The firm maintained a $150,000 year-end target, citing ETF demand and corporate treasury adoption.
Moreover, Strategy’s Bitcoin holdings, valued at $53.5 billion, reflect continued institutional participation. Analysts noted that fewer investors are exiting positions below $100,000, helping stabilize prices.
