Coinbase executive says Bitcoin is rising due to liquidity recovery and institutional demand, not geopolitics…

John D’Agostino, Coinbase’s head of institutional strategy, said Bitcoin’s recent rally has been driven by restored market liquidity and strong institutional demand, rather than geopolitical events such as the U.S. intervention in Venezuela or the detention of President Nicolas Maduro.

“This is a massive geopolitical event. The story does hold true in the long run as proof of Bitcoin as a temporary alternative to a volatile currency. That’s fine. I also hear the argument that maybe oil prices will go down. Historically, in situations where oil prices are down, the Fed has been accommodative,” D’Agostino said today on CNBC’s “Squawk Box.”

“But usually it’s a demand issue and a supply issue. To be honest, I don’t see any direct evidence that what’s happening in Venezuela is directly applicable,” he added.

D’Agostino highlighted market makers repositioning as key factors driving Bitcoin’s rise, along with rising retail sentiment, strong institutional momentum, and Bitcoin’s decades-long track record as a store of value.

Over the past decade, he said, Bitcoin has risen more than 11,000%, while gold is up 260% and the S&P 500 is up about 300%.

“There has been a gradual rebuilding since the liquidity event on October 10th. Market makers are getting used to their risk parameters and risk is being reintroduced into the market,” he said.

“Retail sentiment is catching up to what we know from the institutional side, which means retail sentiment is catching up to the institutional momentum,” he said.

Regarding institutional adoption, D’Agostino said that despite Bitcoin’s 6% decline in 2025, major institutions working on crypto strategies did not retreat.

“I don’t know of a single large company that doesn’t have an AI and blockchain strategy, or at least is thinking about it,” he said.

He noted that regulatory momentum is accelerating the scheme’s timeline rather than slowing it down.

D’Agostino also addressed concerns about Bitcoin’s volatility, acknowledging that Bitcoin’s volatility is still high but less so over time.

He pointed to expanding use cases, including new regulations allowing Bitcoin to be used as mortgage collateral and partnerships that enable spending with thousands of vendors.

Regarding continued skepticism in public opinion surrounding cryptocurrencies, D’Agostino said the institution’s senior leaders no longer openly doubt Bitcoin’s viability. He noted that few, if any, partner-level executives would argue that Bitcoin will go to zero.

“If you think you’re at partner level now, you’re probably keeping your mouth shut because you’re a little embarrassed,” he said.