Bitcoin has stabilized after a price crash wiped $2 trillion from the combined crypto market since October (though fears are swirling bitcoin could be about to take another plunge lower).
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The bitcoin price has found a floor at just over $65,000 per bitcoin, helped by Tesla billionaire Elon Musk quietly revealing a crypto “game-changer” last week.
Now, after Goldman Sachs chief executive David Solomon has revealed he now owns some bitcoin, a surprise reversal from his 2024 position that he no “real use case" for bitcoin.
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"I’m still trying to figure out how bitcoin behaves," Solomon said during the World Liberty Forum at U.S. president Donald Trump’s Mar-a-Lago resort in Florida, according to an X post by crypto investor Grant Cardone. "I own a little bitcoin, very little."
Solomon added that he was not a “great bitcoin prognosticator” and was merely an observer of the asset, Bloomberg reported.
“I’ve always said I think [bitcoin is a] speculative investment,” Solomon told CNBC in 2024. “I don’t see a real use case.”
Solomon’s bitcoin flip comes as the Trump administration is trying to get crypto market structure legislation through Congress, something that could open up the crypto market to Wall Street giants like Goldman Sachs.
In January last year, Solomon said that Goldman Sachs can’t own, principal, or be involved with bitcoin or crypto, though suggested this has changed "very recently."
“Until ten minutes ago, the regulatory structure was extremely probihative. That reg structure is evoloving,” Solomon said in a clip shared on X.
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Solomon also said he is "in the same camp" as Treasury secretary Scott Bessent when it came to the Senate’s crypto bill.
"It is very, very important that we codify a rules-based system. It’s not going to be perfect," Solomon said, echoing Bessent in advising companies that want to operate without rules to “move to El Salvador.”
Meanwhile, traders are scambling to get ahead of a further bitcoin price crash.
“Bitcoin hasn’t reached its bear market bottom yet," Nic Puckrin, cofounder of Coin Bureau and lead market analyst, said in emailed comments.
“Historically, these have aligned with the 200-week moving average or on-chain signals, which point to a level somewhere between $58,000 and $55,000, which is the average acquisition price of all coins. But it’s not just about technical levels–it’s liquidity that will determine when this bottom arrives. Right now, the liquidity backdrop isn’t conducive to a meaningful rebound.”
Puckrin pointed to hawkish Federal Reserve meeting minutes that “thwarted nearly all hopes of a March rate cut" and a lack of “significant” bitcoin exchange-traded fund “inflows” as signalling the bitcoin price is likely to drop further before bouncing back.
“This simply isn’t the environment for a structural rally,” he added.