Brian Armstrong, CEO of US-based cryptocurrency exchange Coinbase, said Bitcoin’s recent selloff was primarily due to investor sentiment, not macroeconomic or structural factors.
In an interview with CNBC at the World Freedom Forum in Florida, Armstrong dismissed the notion that the price drop was related to Fed management or speculation about the risks of quantum computing.
Investors primarily lock in profits and base their positions on expectations of what the rest of the market thinks, Armstrong said. “Cryptocurrencies can go up and down,” Armstrong said, adding that the current decline is likely to be temporary. He noted that Coinbase has conducted share buybacks and purchased Bitcoin at lower levels during this period, indicating the company is focused on its long-term strategy. He also added that Bitcoin continues to be the best-performing asset over the past decade.
Armstrong also answered the question on social media, “Why is Coinbase consistently misunderstood and undervalued by Wall Street?” Armstrong argued that Coinbase is a classic example of the “innovator’s dilemma,” saying there is a fractured landscape in the traditional financial world.
According to Armstrong, some of the world’s largest and smartest financial institutions are actively embracing the cryptocurrency sector. He noted that the Global Five Systemically Important Banks (GSIBs) have started working with Coinbase, and that approximately 50% of large financial institutions are moving towards cryptocurrency integration as the regulatory framework becomes clearer. But the other half are still lagging behind and resisting, he added.
Armstrong said the crypto sector is directly transforming Wall Street, reminding that historically disruptive innovations such as Uber, Airbnb, AI applications, and SpaceX have faced similar resistance. The message was that “smart people will adapt, and those who lag behind will be weeded out.”
Armstrong argued that Coinbase, and the crypto industry as a whole, is in a stronger position than ever before. He said investors need to act “early and well” to achieve market-beating returns, adding that Coinbase’s value is not yet fully understood by traditional analysts.
Armstrong also commented on the company’s financials, saying that GAAP net income numbers include unrealized gains and losses on crypto assets, so adjusted net income must also be considered. He noted that Coinbase was profitable last quarter despite difficult market conditions, adding that this is sometimes misrepresented in the media.
*This is not investment advice.
