Coinbase warns crypto winter will last another 12 to 18 months

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“We all hope that the bear market will last, you know, 12 to 18 months and will be followed by a strong recovery,” said Coinbase CEO…

A warning to crypto-investors not to make large investment openings was issued by the CEO of Coinbase, Brian Armstrong, as he said the winter in the cryptocurrency market is expected to last another 12 to 18 months.

In particular, in an interview with CNBC, Armstrong suggested that although he hopes the bear market will end in that time, we should prepare for an even more widespread recession.

“We’re all hoping that the bear market will last, you know, 12 to 18 months and then a strong recovery will follow. But obviously, we all have to think that the crisis could last much longer. That’s how we think at Coinbase,” Armstrong told CNBC.

Beyond that, Coinbase’s CEO said the company has weathered four crises in 10 years, so “it’s ready to adapt to the cold until the warmer days arrive.”

“If we keep making great products and don’t go off the rails, we’ll do well in the next five or 10 years.” Armstrong added.

Most of the company’s revenue is tied to trading volumes on the exchange, with Armstrong saying that Coinbase is increasingly “moving” its business towards what he called “subscription and services”, which could contribute to its finances. Subscriptions and services now make up 18% of the company’s revenue, he added.

“I’d like to get to a place where more than 50% of our revenue is subscriptions and services,” he told CNBC.


It is recalled that Coinbase noted a 35% drop in its revenues for the first quarter of the year as extreme volatility in the markets led investors to reduce their exposure to riskier assets, limiting trading volumes, Reuters reports.

Trading volume on the cryptocurrency exchange fell to $309 billion for the quarter ended March 31 compared to $335 billion a year earlier.

In good news, BlackRock will partner with the Coinbase exchange to offer Bitcoin access to institutional investors.

Specifically, BlackRock’s top clients will be able to use its investment management system, Aladdin, to track their exposure to Bitcoin along with other assets in their portfolio, such as stocks and bonds, and make trades on Coinbase.

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