Goldman Sachs says Bitcoin bottom is near as institutional adoption and regulatory progress support a rebound

Cryptocurrency prices have fallen sharply over the past six months. Bitcoin closed March 30 at roughly $66,700, up 0.17% on the day, but more than 45% below its October high. Analysts point to a mix of risk-off sentiment, low trading volumes and geopolitical tensions as key drivers behind the decline.

Bitcoin’s slide and the search for a bottom

Bitcoin’s weakness also aligns with historical patterns: after hype-driven rallies, the asset often enters a prolonged downturn. The latest selloff followed enthusiasm around potential legislative progress, mainstream adoption and a pro-crypto administration. Still, some strategists argue the current dip may be nearing an end.

A recent note from Goldman Sachs, cited by analyst James Yaro, highlighted two signals that could indicate Bitcoin has reached a bottom.

Goldman Sachs: two signals to watch

1) Institutional flows returning
After four months of net outflows, $1.32 billion flowed into spot Bitcoin exchange-traded funds (ETFs) in March, a development Goldman Sachs described as supportive for a potential recovery.

2) Liquidations easing
Goldman also pointed to a shift in Bitcoin trading dynamics in March: the number of liquidations began to decrease. Liquidations occur when leveraged positions are forced to close if price moves move against traders, creating additional selling pressure. With fewer liquidations and higher trading volumes, the market may be losing some of the forced-sale weight that has weighed on prices.

Key market data

Bitcoin snapshot (as cited in the article):

• Market cap: $1.3T
• Day’s range: $66,559 to $67,080
• 52-week range: $60,255.56 to $126,079.89
• Volume: $21B

Liquidations: from peak pressure to easing conditions

In October, the article notes, there were record $19 billion in liquidations in a single day—equivalent to almost 1% of total crypto market capitalization wiped out. Six months later, liquidations are lower and volumes are higher, though a full recovery is expected to take time.

Risks to a rebound

Despite the improving signals, the article cautions that calling a bottom remains difficult given Bitcoin’s volatility. It also highlights geopolitical risk: if the war in Iran continues, Bitcoin could fall further as investors—who dislike uncertainty—may shift toward less risky assets.

The article further links the conflict to higher energy prices, which could push up inflation and potentially delay Federal Reserve rate cuts to later in the year or even early 2027. That would likely keep some investors out of riskier assets such as crypto.

Is it time to buy?

The article suggests investors consider Bitcoin’s longer-term role in a portfolio. It cites research by The Motley Fool stating that the U.S. government owns almost 200,000 Bitcoins, worth about $13.5 billion at current prices. It also points to a Strategic Bitcoin Reserve as a factor that could add legitimacy and reduce volatility.

Bitcoin remains the dominant cryptocurrency, accounting for almost 60% of total market capitalization. While the article notes the price may still decline in the near term, it argues Bitcoin is positioned for stronger long-term performance as institutional adoption and regulatory progress continue.