u.today
Against the backdrop of global chaos on financial markets, Coinbase leadership has stepped forward to defend the current state of the digital asset industry. In short, the message, in the words of the CEO of the largest U.S. crypto exchange, Brian Armstrong, is that "the fundamentals of cryptocurrencies have never been stronger".
Head of Strategy at Coinbase John D'Agostino said in an interview with Yahoo Finance that those doing a victory lap now, looking at falling crypto prices, simply do not see what is happening "under the hood."
While they are watching the top five tokens, the entire global banking elite is already integrating blockchain into its infrastructure plumbing, D'Agostino said. Meanwhile, sovereign wealth funds and entire countries are no longer just buying digital assets but also placing them on central bank balance sheets and even engaging in mining.
Why is Bitcoin still experiencing prolonged downturns?
D'Agostino gives a mathematical explanation, describing it as a normal return to the mean. If Bitcoin were to grow at double-digit rates forever, compounding would eventually make it larger than the entire global economy, which is impossible.
For this reason, periods of correction for scarce assets are just as natural as they are in commodities or private capital markets.
Interestingly, alongside the confident rhetoric from the Coinbase leadership, both the CEO and head of strategy at CryptoQuant's charts show that the American exchange is currently the place where large U.S. players are buying $BTC at $70,000 per coin and higher. This creates what is known as the Coinbase Premium gap, where the price of $BTC on Coinbase becomes higher than on other global platforms.
In summary, Coinbase’s position is simple. If you are nervous about prices, study the infrastructure.