Bitcoin's 45% crash leaves Goldman Sachs eyeing $70K as new floor

Bitcoin's price has dropped sharply over the past year, falling from around $126,000 to below $70,000. Goldman Sachs now expects the cryptocurrency to stabilise near this level after a 45% decline. Meanwhile, market liquidity shows signs of recovery, though demand remains uneven across trading platforms. The cryptocurrency's steep decline began after its peak of $126,000, eventually settling near $68,572—just under Goldman Sachs' projected stabilisation range. Analysts at the bank suggest that consistent demand in both spot and derivatives markets will be key to maintaining price levels.

Market liquidity has improved, with reduced forced selling easing some pressure. However, exchange-traded fund (ETF) flows stay mixed, offering little clarity on future direction. Despite the volatility, Goldman Sachs has flagged certain crypto-related stocks as attractive under current conditions. On a personal note, Goldman Sachs CEO David Solomon revealed holding a 'very, very limited' amount of Bitcoin. His comments came as the bank reiterated its cautious but selective approach to crypto investments.

Bitcoin now trades at $68,572, slightly below Goldman Sachs' $70,000 stabilisation target. While liquidity conditions have strengthened, sustained recovery will depend on broader market demand. The bank continues to monitor crypto-related equities as potential opportunities amid ongoing volatility.