Goldman's Dire Cryptocurrency Warning
2017’s meteoric, nearly across-the-board surge in cryptocurrency prices has seemingly come to an abrupt end. Goldman Sachs Group Inc.’s global head of investment research, Steve Strongin, has indicated that the recent market tumble, with losses to the tune of nearly $500 billion, stands to get much, much worse.
In a February 5, 2018 report, Strongin warned digital currency investors to prepare for massive future changes. While he did not outline a timeframe, Strongin cautioned that most digital currencies, which lack intrinsic value, will likely trade to zero before being replaced by a small group of competitors. Strongin’s research, citing the recent price swings as evidence, indicates a bubble inconsistent with a “few-winners-take-most” market.
Strongin believes that most modern digital coins have too many challenges to succeed – security issues, high maintenance costs, and slow transaction times that present significant obstacles to consistency and staying power.
While sobering, the report is not a death knell for cryptocurrency. Strongin alludes to parallels with the 1990s dotcom bubble – when it burst, it cleared detritus from the landscape, leaving survivors like Google and Amazon. Strongin remains bullish on the improvement of blockchain, and he envisions important practical applications, like improving financial ledgers, to become mainstream at some point down the road.
Strongin also asserts that “just because we are in a speculative bubble does not mean current prices can’t increase for a handful of survivors,” but he also cautioned: “At the same time, it probably does mean that most, if not all, will never see their recent peaks again.”
While investors may clamor to get back to the gangbusters returns of 2017 and the highs of December and January, it may not be realistic for some cryptocurrencies. If anything, the sharp correction should encourage investors to tread more carefully into the cryptocurrency arena.
If you’re looking for investment tools to help you navigate the cryptocurrency markets, Tickeron has developed Artificial Intelligence trained to find price patterns and trends in cryptocurrency. In early January, Tickeron’s AI predicted a significant decline for Bitcoin and Ethereum before the massive sell-off took place. Could more dire predictions be ahead? Subscribe to Tickeron’s A.I. to find out what the algorithms say.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for GS turns negative, indicating new downward trend
GS saw its Momentum Indicator move below the 0 level on September 09, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 74 similar instances where the indicator turned negative. In 44 of the 74 cases, the stock moved further down in the following days. The odds of a decline are at 59%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for GS turned negative on September 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In 22 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 50%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 55%.
The Aroon Indicator for GS entered a downward trend on October 06, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 14 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
GS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 4 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 19 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 60 (best 1 - 100 worst), indicating fairly steady price growth. GS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 64 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 71 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.432) is normal, around the industry mean (4.351). P/E Ratio (14.149) is within average values for comparable stocks, (30.023). Projected Growth (PEG Ratio) (1.133) is also within normal values, averaging (0.809). Dividend Yield (0.020) settles around the average of (0.016) among similar stocks. P/S Ratio (4.394) is also within normal values, averaging (16.763).
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a provider of investment banking, securities and asset management services
Industry InvestmentBanksBrokers
Advertisement