Coinbase CEO believes the bear market will be over in 12-18 months

Crypto exchange giant Coinbase CEO Brian Armstrong predicts that the current crypto winter will persist for 12 to 18 months. He acknowledged that his organization is ready for a prolonged bear market due to the fact that it is accompanied by a larger macroeconomic problem.

The top executive recently stated in an interview with CNBC that the bear market should only last for 18 months before prices of digital assets enter a recovery phase. 

Coinbase CEO cautioned that economic projections are difficult to make with any degree of accuracy, saying, “we all hope it’ll be, you know, 12 to 18 months and a nice recovery, but you obviously have to plan for it being longer than that. And so that’s how we think about it. And we don’t try to get too cute about predicting the future.”

Founded in 2012, Coinbase has already survived other market downturns, including the one in 2018. Armstrong is sure that the trading platform will recover from the current crash and maintain its position as one of the industry’s heavyweights by keeping that experience in mind. He continued:

“We’ve been through four cycles like this as a company. We’re only ten years old… If we just don’t get distracted, and we keep building great products, we’re going to do fine over the next five or ten years.”

Troubling months for Coinbase

It is important to note that Coinbase posted a net loss of $1.1 billion in Q2 2022 and that the year’s first quarter was also very unsuccessful amid the current situation. The company chose to make some cost reductions as a result of the market slump and investor outflow, and in June, it let go of 18% of its entire workforce, as TheCoinRise reported.

Armstrong stated that Coinbase, which is currently facing several lawsuits, will want to “get to a place where more than 50% of our revenue is subscription and services” in order to deal with those problems, expecting that the intense rivalry among cryptocurrency platforms will lower trading fees.