Key facts
- Goldman Sachs is cautiously optimistic about the crypto market for the second half of 2026.
- Crypto trading volumes declined significantly in July and August.
- The overall crypto market cap has seen a rebound.
- Goldman Sachs has increased its crypto ETF positions.
- Buy ratings were issued for Coinbase (COIN) with a $196 target and Robinhood (HOOD) with a $124 target.
- Bitcoin price has recovered above $80,000.
Goldman Sachs has adopted a cautiously optimistic stance on the cryptocurrency market for the latter half of 2026, despite a notable decline in trading volumes. The firm's latest research indicates a 30% drop in crypto trading volumes in July and an additional 21% in August, extending a trend of lower activity compared to previous cycles.
Despite overall trading volumes plunging approximately 75% from their peak, the crypto market capitalization has rebounded by about 21% to $2.8 trillion in the past week. Goldman Sachs analysts suggest that trading volumes could recover if the market capitalization remains stable at current levels. The report highlights that 35% of institutional investors view regulatory uncertainty as the primary obstacle to crypto adoption, while 32% see regulatory clarity as the key catalyst.
Positive developments contributing to this outlook include recent SEC innovation exemptions, crypto companies obtaining OCC national bank charters, and the integration of crypto infrastructure services into traditional finance. The SEC is actively pursuing crypto regulations amidst delays in the CLARITY Act. Notably, Goldman Sachs CEO David Solomon has voiced support for the CLARITY Act, even as banks express opposition to stablecoin yields.
In line with its positive outlook, Goldman Sachs has issued buy ratings for cryptocurrency-related stocks Coinbase Global (COIN) and Robinhood Markets (HOOD), anticipating revenue growth as these firms expand into offerings like tokenized stocks and perpetual futures trading. The firm set a price target of $196 for COIN and $124 for HOOD. These recommendations come as COIN stock has rallied over 21% and HOOD stock has gained 12% in the past week.
Furthermore, Goldman Sachs increased its crypto ETF positions in the second quarter, notably raising its holdings in XRP ETFs to $86.5 million. This move follows a significant price surge in XRP. Bitcoin's price has also recovered, surpassing $80,000 and showing a 26% increase over the week, with a nearly 75% rise in trading volume in the last 24 hours as investors await US PCE inflation data.