Goldman Sachs Calls $70K Bitcoin Bottom After 45% Bloodbath

Bitcoin may be nearing its bottome after a prolonged decline, according to a recent research note from Goldman Sachs.

Early signs of stabilization are emerging across the crypto market. The bank points to easing selling pressure and improving market balance as key indicators that the worst of the downturn could be passing.

Supporting this view, analyst James Yaro suggests Bitcoin likely established support near $70,000 following a sharp correction. After climbing to approximately $126,000, the asset fell roughly 45% and was trading around $68,562 at the time of the report, slightly below the projected stabilization range.

Key Points

• Goldman Sachs signals that Bitcoin may have found a support level near $70,000 after a steep 45% correction.
• Forced selling is declining, easing pressure and helping the crypto market rebalance.
• Institutional investors are showing early signs of renewed participation, indicating cautious confidence.
• The bank is shifting its strategy toward utility-focused assets such as XRP, reflecting long-term growth potential.
• Crypto-related stocks, including Coinbase and Figure Technologies, are gaining favor amid market stabilization.
• Market recovery is expected to be gradual through 2026, driven by institutional inflows and a more resilient structure.

Decline in Forced Selling Supports Bitcoin Market Balance

A major driver behind the emerging stability is the decline in forced selling. Goldman Sachs highlights reduced outflows from exchange-traded funds and large institutional holders as a critical shift. Consequently, with less urgent liquidation, the market has begun to rebalance.

At the same time, the excess optimism that characterized the post-2025 rally has largely dissipated. This cooling of sentiment suggests Bitcoin is transitioning into a consolidation phase rather than continuing its downward trajectory.

Although macroeconomic headwinds, such as tight monetary policy and geopolitical risks, remain in place, their influence now appears more contained.

In parallel, liquidity conditions are gradually improving. However, Goldman notes that this recovery remains uneven across different trading venues.

Institutional Investors Show Early Signs of Return

As market conditions stabilize, institutional investors are beginning to re-engage. Goldman Sachs observes early signs of renewed participation, although positioning remains cautious.

Importantly, the bank stops short of calling a full recovery. Instead, it highlights that trading behavior has become more consistent, suggesting a healthier and more stable market environment. 

This shift is further supported by the firm’s own disclosures, which show approximately $2.36 billion in exposure to Bitcoin and Ethereum ETFs as of late 2025. Such figures indicate that institutional interest has not disappeared, even during the downturn.

Crypto Stocks Gain Favor Amid Market Reset

Beyond digital assets, Goldman Sachs sees growing opportunities in crypto-related equities as the market resets.

For instance, the bank has maintained a positive outlook on Coinbase Global, assigning a price target of $235 despite a recent earnings miss. This confidence reflects strong retail engagement and continued expansion into institutional products, including developments within Coinbase’s “Base” ecosystem.

Similarly, Goldman has raised its price target for Figure Technologies to $42, citing rapid growth in its blockchain-based lending platform. This underscores a trend toward real-world applications driving value in the sector.

Strategic Shift Toward Utility-Focused Assets

In addition to its market outlook, Goldman Sachs has made notable adjustments within its own portfolio. Recent regulatory filings reveal a significant increase in exposure to XRP-focused ETFs.

Specifically, the bank now holds approximately $152 million across four funds, making it the largest institutional investor in this category. At the same time, it has reduced its spot Bitcoin ETF holdings by about 40%.

While this repositioning has not yet translated into a significant price surge for XRP, it reflects growing confidence in its long-term potential.

Outlook Points to Gradual Recovery in 2026

Looking forward, Goldman Sachs believes the current market structure is more resilient than in previous cycles. However, trading volumes remain below 2025 highs, indicating that a full recovery is still unfolding.

In the near term, the bank anticipates a modest slowdown in revenues, with a typical trough period lasting around three months. Beyond that, a recovery could take shape in the second half of 2026.

This rebound is likely to be driven by renewed institutional inflows into regulated market participants, particularly in the evolving post-GENIUS Act environment. Taken together, these trends suggest that while the market may have moved past its most severe phase, the path to full recovery will be gradual rather than immediate.