- The crypto winter has seen crypto prices fall to new cycle lows
- Coinbase CEO Brian Armstrong says markets are difficult to predict, but a recovery in the cryptocurrency market could take a year or more.
- Armstrong indicated that Coinbase is preparing for a down cycle after going through the first four such cycles.
Coinbase CEO Brian Armstrong believes that it will take 12 to 18 months for the crypto to recover from the bear market, but emphasized that the recession as a whole is not a new phenomenon for the industry.
Armstrong talking to CNBC’s Kate Rooney Interview Published on Tuesday.
The crypto winter can last 12-18 months
Recent events including the collapse of several crypto companies have meant that the industry remains in a bear cycle. For Coinbase, the slowdown has affected its shares and the company’s revenue. But Armstrong is optimistic for the sector and the crypto exchange.
,Obviously we’re in a bit of a circle here, but that’s nothing unusual for us“He told Rooney, noting that what is happening Coinbase has already gone through.
According to him, the company has seen four such down cycles in the last 10 years since its launch, with 2022 only different in that it coincides with the slowdown.extensive micro environment,
The past few months have seen ferocity in the crypto markets, with the leading cryptocurrency bitcoin falling above $69,000 in November to fall below the high of $20,000 in the last bull market cycle.
The broader crypto market, Ethereum, also lost most of the bull cycle gains, wiping out over $2 trillion in market cap value.
How long he sees the Down cycle as lasting, he says it is likely to be 12 to 18 months. However, although he expects a correction within this period, he cautions that the market may have to “plan to stay longer than this”.
,That’s how we think about it, and we try not to be too cute when predicting the future,” He added.
He also talked about his company’s cost-cutting plans, further measures for the layoffs made in June. As far as shifting from reliance on trading fees is concerned, the company is looking to build its business around more subscription and service-based revenue generation.
The main thing is to get up to 50% of the revenue from the above models, he said.