On Tuesday, Coinbase CEO Brian Armstrong warned investors to stay put since the crypto winter (the common phrase for the industry’s periodic downturns) might linger for another 12–18 months.
Coinbase CEO’s take on the bear market
Armstrong hinted in an interview with CNBC that, even though he hopes the bear market will be over by then, the largest U.S. crypto exchange is getting ready for an even bigger drop.
We all hope it’ll be, you know, 12 to 18 months and a nice recovery, but you obviously have to plan for it being longer than that. And so that’s how we think about it. And we don’t try to get too cute about predicting the future.Armstrong told CNBC.
Coinbase, which began operations in 2012, has previously survived many prior market downturns, including the most recent one in 2018. Keeping that in mind, Armstrong is sure that the trading venue will get through the current crash and remain one of the biggest in the industry.
“We’ve been through four cycles like this as a company. We’re only ten years old… “If we just don’t get distracted, and we keep building great products, we’re going to do fine over the next five or ten years,” he added.
The bear market is likely to persist
Last month, Grayscale Investments, which is the largest digital asset manager in the world, also compared the current drop to other market cycles. The crypto winter, according to the company’s analysts, began in the middle of June and might persist until the beginning of 2023. The experts then talked more about how the crypto industry always comes back stronger from each cycle.
The news has not been all bad for Coinbase. BlackRock, the biggest asset manager in the world, partnered with the firm earlier this month despite the market’s downward trend to provide its institutional customers with access to cryptocurrency trading via the company’s platform. After the news, Coinbase’s stock price went up 18% to $95.47, but it has lost some of those gains in recent weeks. On Tuesday, Coinbase stock closed at $71.18, down 0.41%.