Goldman Sachs: Crypto Prices Hit Bottom After 46% Sector Decline
In a note released Wednesday, Goldman Sachs analysts signaled that cryptocurrency prices may have found their cyclical floor. The analysis follows a prolonged correction that saw digital asset-linked stocks fall 46% from their October 2025 peak. Goldman analyst James Yaro stated that the magnitude of the crypto price decline "has approximately reached the historical peak to trough average" for a market cycle.
This assessment leads the firm to see an "increasingly attractive entry point" into the digital asset sector. While acknowledging recent volatile and flat performance, the note suggests that the worst of the drawdown may be over, positioning select companies for a recovery.
Firm Recommends Three Stocks, Sees 35% Upside in Figure
Goldman identified three key stocks with buy ratings, viewing them as well-positioned to capitalize on a market rebound. The firm raised its price target for Figure Technologies to $42 from $39, implying a 35% upside from its Wednesday closing price of $31. Goldman cited Figure's outperformance in its blockchain-based HELOC business as a key driver for expansion.
Despite lowering price targets for Robinhood and Coinbase, the bank maintained its buy ratings, noting significant upside potential. The analysis highlights Robinhood's strategic push to attract advanced traders and expand into banking services. For Coinbase, Goldman points to growth opportunities in crypto derivatives, subscription services, and new product offerings like prediction markets and equities trading.
Trough Volumes Could Trim 2026 Profits by 4%
While the overall outlook is bullish, Yaro included a note of caution regarding trading volumes. The analysis warns that while prices may have bottomed, transaction volumes could fall further before a meaningful rebound. This could potentially reduce 2026 revenue forecasts by 2% and profits by 4% for affected companies.
However, the note contextualizes this risk by observing historical patterns. "Trough crypto volumes typically last for a median of 3 months before meaningfully rebounding," Yaro added, suggesting any further weakness may be short-lived before a broader market recovery takes hold.
