20 July 2026
Coinbase CEO Expects Crypto Bear Market To Last 12 18 Months
The CEO of Coinbase, Brian Armstrong has warned investors that crypto winter might last up to 12 to 18 months but is also preparing for the possibility of it dragging on longer.
The leading cryptocurrency, Bitcoin, lost its value by 55% year-to-date. Also, Coinbase COIN, -0.41% recorded a loss of $1.09 billion in the second quarter, whereas it reported a net income of $1.61 billion in the year-before quarter. According to Dow Jones market data, the crypto exchange platform’s shares are off more than 70% year-to-date.
In an interview with CNBC, Armstrong said the market downturn is “not unusual” for the company. He said, “we’ve been through four cycles like this as a company. We’re only 10 years old. This one just happens to coincide with the broader macro environment coming down.”
The exchange is also looking for ways to cut costs by reducing costs related to marketing, external vendors, and Amazon Web Services.
In June, Coinbase laid off 18% of its workforce due to the rapidly changing economic conditions, the need for managing costs, and the company’s previous over-hiring.
The aim of Coinbase is to get to a place where more than 50% of revenue is subscriptions and services due to the growing competition among crypto exchanges.
He said, “I do think there’s going to be margin compression, eventually it has to happen at some point because everything that we’re building, you know, others, eventually build it and it’ll become a little bit more commoditized.”
In the second quarter, the subscription and services of Coinbase generated 18% of its revenue, up from only 4% two years ago.
He is also looking closely at every deal regarding mergers and acquisitions.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice
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