Goldman Sachs Signals Bitcoin Cyclical Bottom, Upgrades Three Crypto Equities

Executive Summary

Goldman Sachs analysts have identified a potential cyclical bottom for Bitcoin following a market correction that erased approximately 45% of the asset's peak value. The investment bank simultaneously highlighted three crypto-related equities as attractive buy opportunities amidst the downturn. This strategic shift comes as ETF flows turn mildly positive, signaling the conclusion of a heavy distribution phase that began late last year.

What Happened

Wall Street's largest investment bank issued a new outlook indicating Bitcoin may have finished its correction cycle. The assessment follows a period where crypto-related equities declined about 46% from their recent highs. Goldman Sachs specifically pointed to Robinhood, Figure Technologies, and Coinbase as standout picks for investors looking to capitalize on the recovery.

Figure Technologies received a direct price target increase, moving from $39 to $42. This adjustment implies roughly 35% upside potential from current levels. Robinhood continues to expand its platform capabilities for advanced traders while broadening its financial services offerings. Coinbase is shifting focus toward crypto derivatives, subscription services, and the launch of equities-trading and banking products.

Despite the optimistic equity picks, the bank cautioned that crypto trading volumes could dip further in the immediate term. Projections suggest this volume contraction might reduce 2026 revenue by 2% and profits by 4%. However, analysts expect volumes to rebound within a median three-month trough period.

Market Data Snapshot

Market Health Indicators