- Wall Street analysts suggest the crypto selloff may have stabilized.
- Goldman Sachs points to flattish performance and attractive valuations.
- Bitcoin's sideways trading is historically linked to market bottoms.
- Institutional demand remains resilient with strong corporate holdings.
- Risks persist from macroeconomic uncertainty and potential lower support tests.
After a punishing six-month decline that saw crypto-related stocks plummet 46% since October 2025, a growing chorus from Wall Street is signaling that a bottom may be in sight. In a note to clients on Thursday, Goldman Sachs analyst James Yaro pointed to "volatile but flattish performance" in recent weeks, suggesting the selloff has stabilized and valuations are becoming attractive. This analysis, highlighting buy-rated picks like Robinhood, Coinbase, and Figure Technologies, offers a beacon of optimism for investors who have endured a downturn that erased nearly half the value from the sector.
A consensus of cautious optimism
The sentiment from Goldman is not an isolated one. Other prominent research firms are aligning with a cautiously bullish outlook. K33 Research noted that bitcoin has been trading sideways between $60,000 and $75,000 recently, a pattern historically associated with market bottoms. Vetle Lunde, Head of Research at K33, observed, "With bitcoin trading below $100,000, fewer investors are inclined to exit positions, helping anchor prices." This behavior indicates that long-term holders are not rushing for the exits, providing a foundation of stability.
Furthermore, Wall Street broker Bernstein has explicitly called the bottom. In a Tuesday note, analysts led by Gautam Chhugani stated, "We believe Bitcoin has found its trough and is now heading higher." Bernstein is standing firm on its $150,000 year-end price target for bitcoin, a prediction that underscores a significant expected rebound from current levels around $70,000. This confidence is rooted in observable market shifts and institutional behavior.
The pillars of a potential recovery
Several key factors are feeding this newfound optimism. First, the relentless selling pressure from spot bitcoin exchange-traded funds appears to be abating. ETF flows have turned mildly positive since late February, marking a potential end to the heavy distribution phase that followed the market's peak. This is a critical technical shift, indicating renewed investor interest at these lower price levels.
Second, institutional demand shows signs of resilience. Bernstein pointed to strong ETF flows and growing corporate treasury interest as evidence. The firm also highlighted the strength of MicroStrategy, which now holds roughly 3.6% of the total bitcoin supply, worth about $53.5 billion. Bernstein views the company as a high-beta proxy for bitcoin boasting a "resilient, liquid and pressure-tested balance sheet." The sustained interest in such a major corporate holder suggests deep-seated institutional faith in bitcoin's long-term value proposition, even amid volatility.
Navigating the remaining risks
Despite the encouraging signals, analysts acknowledge that risks persist. Goldman Sachs cautioned that trading volumes could dip further, potentially trimming 2026 revenue and profit estimates for key players. The broader macroeconomic environment remains uncertain, with a hawkish Federal Reserve, geopolitical tensions, and high oil prices continuing to limit risk appetite across all markets.
Some technical analysts also warn that the final low may not yet be recorded. One analysis points to Bitcoin's long-term weekly moving averages, which have defined major cycle bottoms in the past. This perspective suggests that while the market is in a late-stage correction, price could still test support near $60,000 or even lower before establishing a definitive floor. This view tempers the immediate bullish calls with a reminder of bitcoin's historical volatility.
The recent price action offers a microcosm of the current climate. After a sharp selloff pushed bitcoin from around $75,000 to near $67,000, it has rebounded, supported by easing ETF outflows and constructive geopolitical developments, such as indirect U.S.-Iran talks. This ability to find support and grind sideways, rather than continue cascading lower, is what analysts are interpreting as a sign of exhaustion among sellers.
For long-term observers of bitcoin, this moment carries a familiar rhythm. The cryptocurrency has repeatedly weathered brutal drawdowns, each time followed by a period of accumulation and eventual recovery. The current analysis from major financial institutions suggests we may be entering that accumulation phase once again. While the path forward is unlikely to be smooth, the combination of improved technicals, steadying institutional demand, and historically significant support levels provides a compelling case that the worst of this cycle's downturn could be behind us. The market, it seems, is quietly preparing for its next chapter.
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